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joshtatum92 joshtatum92
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A year ago
The Inland Corporation manufactures 1,000 motors that are used in the production of its go-karts. Inland has been approached by an outside supplier that will sell the motor to Inland for $39 each. Inland's cost to manufacture each motor are as follows:

Direct material$25
Direct labor  8
Variable overhead  4
Fixed overhead   6
Total$43

All fixed overhead is unavoidable and is allocated based on machine hours. The facilities that are used to manufacture the motors have no alternative uses.

Required:

a.Should Inland continue to manufacture the motors?
b.Would your answer change if Inland could lease the facilities previously used to
produce
the motors for $4,800 per year?
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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KFordKFord
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A year ago
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joshtatum92 Author
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A year ago
Helped a lot
gage
wrote...

Yesterday
Just got PERFECT on my quiz
klyn
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2 hours ago
Good timing, thanks!
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