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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
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