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Ahrens Tech makes motherboards for the computers it produces. Costs for producing 25,000 motherboards are shown in the chart. Ahrens can purchase the motherboards from
Ahrens Tech makes motherboards for the computers it produces. Costs for producing 25,000 motherboards are shown in the chart. Ahrens can purchase the motherboards from an outside firm for $9.50 apiece. Will Ahrens save money or incur additional costs by purchasing the motherboards? Direct materials Direct labor Variable manufacturing costs Fixed manufacturing costs Make $115,000 $35,000 $62,000 $46,000 O It will realize $20,500 in savings. It will realize $6,000 in savings. O It will incur $3,350 in additional costs. O It will incur $6,500 in additional costs. Buy $0 $0 $0 $27,000
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