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Business, 10.08.2021 05:30 DeathFightervx

Mighty Safe Fire Alarm is currently buying 55,000 motherboards from MotherBoard, Inc. at a price of $63 per board. Mighty Safe is considering making its own motherboards. The costs to make the motherboards are as follows: direct materials, $34 per unit; direct labor, $11 per unit; and variable factory overhead, $14 per unit. Fixed costs for the plant would increase by $87,000. Which option should be selected and why? a. buy, $87,000 more in profits
b. make, $220,000 increase in profits
c. make, $133,100 increase in profits
d. buy, $133,100 more in profits

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