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DSP Manufacturing produces a small refrigerator that requires a motor. It has the opportunity to purchase these Motors from a reliable supplier at a purchase

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DSP Manufacturing produces a small refrigerator that requires a motor. It has the opportunity to purchase these Motors from a reliable supplier at a purchase price of $33 per motor. Currently, DSP manufactures the motors. DSP's costs for it production of 10,000 motors are as follows: Variable Costs per Motor: Direct Materials $8.00 Direct Labor. 14.00 Variable Overhead 7.00 Fixed Overhead Costs. $80,000 If DSP purchases the motors, 60% of the fixed costs can be eliminated. DSP should (make or buy) the motors, because the net income would increase by

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