Question 4 20 21 Marigold just received a bid from a supplier for 6,000 motors per year used in the manufacture of electric lawn mowers. The supplier offered to sell the motors for $90 each. Marigold' estimated costs of producing the motor follow: Direct materials $40 Direct labour Variable overhead Fixed overhead Prior to making a decision, the company's CEO commissioned a special study to see whether any decreases were possible in fixed overhead costs. The company would avoid two setups, which would reduce total spending by $10,300 per setup. One inspector would be laid off, at a savings of $29,800. A person in materials handling could also be laid off, at a savings of $20,400. Engineering work would be reduced by 470 hours at $15 per hour. Although the work would decrease by 470 hours, the engineer assigned to the motor line also spends time on other products. 61 Ignore the information from the special study. Using the general decision rule, determine whether the motor should be produced internally or purchased from the supplier. (Round all entries to 2 decimal places, e.g. 5.75.) Make Buy Relevant costs per unit: The motor should be Repeat the analysis, using the information from the special study. (Round all entries to 2 decimal places, e.g. 5.75.) Make Buy Relevant costs per unit: The motor should be produced