Mighty Safe Fire Alarm is currently buying 57,000 motherboards from MotherBoard, Inc. at a price of $67 per board. Mighty Safe is considering making its own motherboards. The costs to make the motherboards are as follows: direct materials, $29 per unit; direct labor, $8 per unit; and variable factory overhead, $17 per unit. Fixed costs for the plant would increase by $72,000. Which option should be selected and why? Oa. make, $669, 180 increase in profits Ob. buy, $669,180 more in profits Oc. make, $741,000 increase in profits Od. buy, $72,000 more in profits Keating Co. is considering disposing of equipment with a cost of $60,000 and accumulated depreciation of $42,000. Keating Co. can sell the equipment through a broker for $27,000, less a 7% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $45,000. Keating will incur repair, insurance, and property tax expenses estimated at $9,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is Oa. $10,890 Ob. $7,623 Oc. $13,068 Od. $16,335 Use this information for Falcon Co. to answer the question that follow. Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $19 per unit. Fixed costs are $25,000 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,500 units with a special price of $20 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $1 per unit would be eliminated. Should the special order be accepted? Oa. Ob. There would be no difference in accepting or rejecting the special order Oc. The answer cannot be determined from the data given. Od. yes no