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: