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Mighty Safe Fire Alarm is currently buying motherboards from MotherBoard, Inc. at a price of $ per board. Mighty Safe is considering making its own motherboards. The costs to make the motherboards are as follows: direct materials, $ per unit; direct labor, $ per unit; and variable factory overhead, $ per unit. Fixed costs for the plant would increase by $ Which option should be selected and why?
Round your intermediate calculations to decimal places and final answer to nearest dollar.
a buy, $ more in profits
b make, $ increase in profits
c make, $ increase in profits
d buy, $ more in profits
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