Mighty Safe Fire Alarm is currently buying 61,000 motherboards from Motherboard, Inc. at a price of $66 per board. Might
Posted: Sun Jul 03, 2022 3:55 pm
Mighty Safe Fire Alarm is currently buying 61,000 motherboards from Motherboard, Inc. at a price of $66 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, $9 per unit; and variable factory overhead, $15 per unit. Fixed costs for the plant would increase by $90,000. Which option should be selected and why? Oa. bey, 3519,720 more in profits Ob. buy, $90,000 more in profits Oc maks, 5610,000 increase in profits Od. make, $519,720 increase in prefis