Mighty Safe Fire Alarm is currently buying 56,661 motherboards from MotherBoard's Inc. at a price of $67.00 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: Direct Materials $32.00 per unit, Direct labor $8.00 per unit, Variable Factory Overhead $15.00, Fixed Costs for the plant would increase by $80,341.00. As the financial advisor, offer your recommendations.

Select the correct answer.

a. Buy - $80,341.00 more in profits

b. Make - $599,591.00 increase in profits

c. Buy - $599,591.00 more in profits

d. Make - $679,932.00 increase in profits

Answer rating: 100% (QA)

b Make 59959100 increase in profi... View the full answer