Crafty Tools manufactures an electric motor that it uses in several of its products. Management is considering whether to continue manufacturing the motors or to buy them from an outside source. The following information is available: 1. The company needs 10,000 motors per year. The motors can be purchased from an outside supplier at a cost of $20 per unit. 2. The unit cost of manufacturing the motors is $42, computed as follows: Direct materials $96,000 Direct labor 120,000 Factory overhead: Variable 90,000 Fixed 114,000 Total manufacturing costs $420,000 Cost per unit ($420,000