Mighty Safe Fire Alarm is currently buying 50,000 motherboard from Mother Board, Inc. at a price of
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Question:
Mighty Safe Fire Alarm is currently buying 50,000 motherboard from Mother Board, 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, Variable Factory Overhead $16.00, 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
Determine the correct option:
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Social Media Marketing A Strategic Approach
ISBN: 978-0538480871
1st edition
Authors: Melissa Barker, Donald I. Barker, Nicholas F. Bormann, Krista E. Neher
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