Outsourcing $($Make$-$or$-$Buy$)$ Decision

per unit of an auto air purifier follows.

These cost predictions include $$80,000$ in fixed factory overhead averaged over $10,000$ units.

air purifier by $50$ percent.

Calculate the net advantage $($disadvantage$)$ of outsourcing the electric motors from Mini Motor Company.

Use a negative sign with your answer to indicate a net disadvantage of outsourcing $($if applicable.$)$

$($b$)$ If it could otherwise rent the motor$-$assembly space for $$25,000$ per year, should it make or outsource this component?

Calculate the net advantage $($disadvantage$)$ of outsourcing the motors, assuming the space could be rented.

Use a negative sign with your answer to indicate a net disadvantage of outsourcing $($if applicable$).$

$$0$

$($c$)$ What additional factors should it consider in deciding whether to make or outsource the electric motors?

The quality of their own and the supplier's motors.

$$he dependability of the supplier.