1. Mighty Safe Fire Alarm is currently buying 61,000 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, $30 per unit; direct labor, $11 per unit; and variable factory overhead, $15 per unit. Fixed costs for the plant would increase by $88,000. Which option should be selected and why?

   a.make, $461,160 increase in profits

   b.make, $549,000 increase in profits

   c.buy, $461,160 increase in profits

   d.buy, $88,000 increase in profits