Essay
Southwestern Company needs 1,000 motors in its manufacture of automobiles.It can buy the motors from Jinx Motors for $1,250 each.Southwestern's plant can manufacture the motors for the following costs per unit:
If Southwestern buys the motors from Jinx,30% of the fixed manufacturing overhead applied will be avoided.
Required:
a.Should the company make or buy the motors?
b.What additional qualitative factors should Southwestern consider in deciding whether or not to make or buy the motors?
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a.
b.Management should consider sever...View Answer
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Correct Answer:
Verified
b.Management should consider sever...
View Answer
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