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Accounting

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MDG Accounting
Mighty Safe Fire Alarm is currently buying 58,000 motherboards from MotherBoard, Inc. at a price of $65 per board. Mighty Safe is considering making its own motherboards. The costs to make the motherboards are as follows: direct materials, $32 per unit; direct labor, $11 per unit; and variable factory overhead, $17 per unit. Fixed costs for the plant would increase by $84,000. Which option should be selected and why?
Round your intermediate calculations to 2 decimal places and final answer to nearest dollar.
a. buy, $205,900 more in profits
b. make, $205,900 increase in profits
c. make, $290,000 increase in profits
d. buy, $84,000 more in profits
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