Question 5 (10 marks) Super Elite Appliances Ltd. (Super) makes average quality refrigerators. Each year it manufactures 24,000 motors become a part of the refrigerator. The costs per motor are as follows: Direct materials $ 210.00 Direct labour $ 105.00 Variable manufacturing overhead $ 84.00 Fixed manufacturing overhead $ 294.00 Total cost per motor $ 693.00 An outside supplier has offered to sell Super the 24,000 motors it needs for $434.00 per motor. If Super accepts the facilities now being used to make the motors could be rented out for $495,000 per year. If the motors were from the outside supplier, $88.00 of the fixed manufacturing overhead cost per motor would be avoidable. Required: If Super purchased the motors from the outside supplier, how much would operating profit change? A) decrease by $6,796,000 B) increase by $4,599,000 C) increase by $777,000 2) decrease by $6,312,000 E) increase by $1,767,000 increase by $1,272,000 decrease by $5,322,000