Question: please answer this question quick (will like up) Mighty Safe Fire Alarm is currently buying 55,000 motherboards from MotherBoard, Inc., at a price of 567
Mighty Safe Fire Alarm is currently buying 55,000 motherboards from MotherBoard, Inc., at a price of 567 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows direct materials, 532 per unit direct labor, $10 per units and variable factory overhead, $15 per unit. Fixed costs for the plant would increase by $81,000. Which option should be selected and why? Oa, make $550,000 increase in profits Ob, make $469,150 increase in profits Oc buy, 581,000 increase in profits Od. buy $469.150 increase in profits
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
