Mighty Safe Fire Alarm is currently buying 57,000 motherboards from MotherBoard, Inc., at a price of $63 per board. Mighty Safe is considering making itsown boards. The costs to make the board are as follows: direct materials, $33 per unit; direct labor, $12 per unit; and variable factory overhead, $15 perunit. Fixed costs for the plant would increase by $90,000. Which option should be selected and why?Oa.a. buy, $90,000 increase in profitsOb. make, $80,940 increase in profitsc. make, $171,000 increase in profitsOd. buy, $80,940 increase in profits

Total Relevant Cost :— It is the cost that is different in different alternatives. It is considered…

Answered: Mighty Safe Fire Alarm is currently…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...

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