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Mighty Safe Fire Alarm is currently buying 61,000 motherboards from Mother Board, Inc. at a price of $67 per board. Mighty Safe is considering making

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Mighty Safe Fire Alarm is currently buying 61,000 motherboards from Mother Board, Inc. at a price of $67 per board. Mighty Safe is considering making its own boards. The costs to make the board are as follows: direct materials, $29 per unit; direct labor, $12 per unit; and variable factory overhead, $14 per unit. Fixed costs for the plant would increase by $75,000. Which option should be selected and why? a. make, $732,000 increase in profits b. make, $656,970 increase in profits c. buy, $656,970 more in profits d. buy, $75,000 more in profits The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Corporate Total Rails Division $47,400 27,900 94,200 Locomotive Division $29,100 22,800 68,200 Cost of goods sold Direct operating expenses Sales Interest expense General overhead Income tax $2,900 19,900 4,200 The income from operations for the Rails Division is a. $66,300 b. $18,900 c. $46,800 d. $94,200

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