Mighty Safe Fire Alarm is currently buying 57,000 motherboards from MotherBoard, Inc., at a price of $63 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: direct materials, $28 per unit; direct labor, $9 per unit; and variable factory overhead, $15 per unit. Fixed costs for the plant would increase by $85,000. Which option should be selected and why?

a.buy, $542,070 increase in profits

b.buy, $85,000 increase in profits

c.make, $627,000 increase in profits

d.make, $542,070 increase in profits