The O.T. Company makes 35,000 motors to be used in the production of its sewing machines. The cost per motor at this level of activity is: Direct materials 4.50 Direct labour 4.60 3.75 Variable manufacturing overhead Fixed manufacturing overhead 3.45 An outside supplier has offered to supply all the motors the company needs for 15 each. If O.T. Company decided not to make the motors, none of the fixed manufacturing overhead cost could be avoided. If O.T. Company decides to continue making the motor, how much higher or lower would operating profit be than if the motors are purchased from the outside supplier? An outside supplier has offered to supply all the motors the company needs for 15 each. If O.T. Company decided not to make the motors, none of the fixed manufacturing overhead cost could be avoided. If O.T. Company decides to continue making the motor, how much higher or lower would operating profit be than if the motors are purchased from the outside supplier? O a. 75,250 higher O b. 45,500 lower O c 120,750 higher O d. 311,500 higher