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Mighty Safe Fire Alarm is currently buying 50,000 motherboards from MotherBoard, Inc., at a price of $65 per board. Migh
Posted: Sun Jun 05, 2022 6:58 pm
by answerhappygod
- Mighty Safe Fire Alarm Is Currently Buying 50 000 Motherboards From Motherboard Inc At A Price Of 65 Per Board Migh 1 (13.32 KiB) Viewed 38 times
Mighty Safe Fire Alarm is currently buying 50,000 motherboards from MotherBoard, Inc., at a price of $65 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: direct materials, $32 per unit; direct labor, $10 per unit; and variable factory overhead, $16 per unit. Fixed costs for the plant would increase by $75,000. Which option should be selected and why? a, make, $275,000 increase in profits b. buy, $75,000 increase in profits c. make, $350,000 increase in profits d. buy, $275,000 increase in profits