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Barrus Corporation Makes 30,000 Motors to Be Used in the Productions

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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: 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. A) $36,000 lower B) $207,000 higher C) $94,500 higher D) $130,500 higher 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.

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Meditation

A practice where an individual uses a technique such as mindfulness to focus their mind on a particular object or thought to achieve a mentally clear and emotionally calm state.

Therapeutic Benefits

The positive health outcomes or improvements derived from undergoing a particular treatment, therapy, or activity.

Secular Practice

Activities or practices not based on or connected to religious beliefs.

Biofeedback

The process of providing feedback information about the status of a biological system to that system.

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