Mighty Safe Fire Alarm Is Currently Buying 50,000 Motherboards from MotherBoard,Inc.at

Multiple Choice

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,$16.00 per unit.Fixed costs for the plant would increase by $75,000.Which option should be selected and why?

A) buy,$75,000 more in profits
B) make,$275,000 increase in profits
C) buy,$275,000 more in profits
D) make,$350,000 increase in profits