The costs to make the board-fixed costs for the plant

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Reference no: EM13775066

Mighty Safe Fire Alarm is currently buying 59,441 motherboards from Mother Board's Inc. at a price of $65.00 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: Direct Materials $29.00 per unit, Direct labor $10.00 per unit, Variable Factory Overhead $16.00, Fixed Costs for the plant would increase by $82,403.00. As the financial advisor, offer your recommendations.

Select the correct answer.

Buy - $82,403.00 more in profits

Buy - $512,007.00 more in profits

Make - $594,410.00 increase in profits

Make - $512,007.00 increase in profits

Reference no: EM13775066

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