Mighty Safe Fire Alarm is currently buying 60,000 motherboards from MotherBoard, 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, $33 per unit; direct labor, $8 per unit; and variable factory overhead, $17 per unit. Fixed costs for the plant would increase by $71,000. Which option should be selected and why? a. make, $420,000 increase in profits b. make, $349,200 increase in profits c. buy, $71,000 increase in profits d. buy, $349,200 increase in profits Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $15 per unit. Fixed costs are $19,400 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 1,680 units with a special price of $19 per unit. Falcon capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, the differential effect on profit would be a(n) a. increase of $10,080 b. increase of $13,104 c. decrease of $6,048 d. increase of $8,064 Mighty Safe Fire Alarm is currently buying 60,000 motherboards from MotherBoard, 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, $33 per unit; direct labor, $8 per unit; and variable factory overhead, $17 per unit. Fixed costs for the plant would increase by $71,000. Which option should be selected and why? a. make, $420,000 increase in profits b. make, $349,200 increase in profits c. buy, $71,000 increase in profits d. buy, $349,200 increase in profits Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $15 per unit. Fixed costs are $19,400 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 1,680 units with a special price of $19 per unit. Falcon capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated. If the order is accepted, the differential effect on profit would be a(n) a. increase of $10,080 b. increase of $13,104 c. decrease of $6,048 d. increase of $8,064