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Barrus Corporation makes 30,000 motors to be used in the productions of its power lawn mowers.The average cost per motor at this level of activity is as follows:
This motor has recently become available from an outside supplier for $25 per motor.If Barrus decides not to make the motors,none of the fixed manufacturing overhead would be avoidable and there would be no other use for the facilities.If Barrus decides to continue making the motor,how much higher or lower will the company's net operating income be than if the motors are purchased from the outside supplier? Assume that direct labor is a variable cost in this company.
Hygiene Factor
A concept in Herzberg's motivation theory, referring to factors that can cause dissatisfaction if missing but do not necessarily motivate if increased or improved.
Interpersonal Relations
The way in which two or more people interact and communicate with each other in various settings.
Hackman-Oldham Job Enrichment Model
A theory that suggests work can be more satisfying by increasing job responsibility, achievement opportunities, and growth.
High Achievers
Individuals who consistently perform at a high level and excel in achieving their goals or objectives.
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