Mighty Safe Fire Alarm is currently buying 62,000 motherboards from Motherboard, Inc., at a price of $66 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, $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? O make, $473,060 increase in profits Ob buy, $85,000 increase in profits Oe make, $558,000 increase in profits Od. buy, 5473,060 increase in profits
Mighty Safe Fire Alarm is currently buying 62,000 motherboards from Motherboard, Inc., at a price of $66 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, $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? O make, $473,060 increase in profits Ob buy, $85,000 increase in profits Oe make, $558,000 increase in profits Od. buy, 5473,060 increase in profits
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format ? And Fast Answering Please ? And Explain Proper Step by Step.
![Mighty Safe Fire Alarm is currently buying 62,000 motherboards from Motherboard, Inc., at a price of $66 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, $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?
Oa make, $473,060 increase in profits
b. buy, $85,000 increase in profits
c. make, $558,000 increase in profits
Od. buy, $473,060 increase in profits](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa284b2d6-792a-4ac6-a1f2-a02cc7fa0613%2F5b0efe36-af2f-4ebf-b5c5-8ad04071c965%2Fk0ujd4p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Mighty Safe Fire Alarm is currently buying 62,000 motherboards from Motherboard, Inc., at a price of $66 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, $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?
Oa make, $473,060 increase in profits
b. buy, $85,000 increase in profits
c. make, $558,000 increase in profits
Od. buy, $473,060 increase in profits
![Stryker Industries received an offer from an exporter for 28,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production
or domestic sales prices. The following data are available:
$25
Domestic unit sales price
Unit manufacturing costs:
Variable
Fixed
9
5
The differential cost from the acceptance of the offer is
O $700,000
b. $252,000
$448,000
Od $140,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa284b2d6-792a-4ac6-a1f2-a02cc7fa0613%2F5b0efe36-af2f-4ebf-b5c5-8ad04071c965%2Ftuoeh2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Stryker Industries received an offer from an exporter for 28,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production
or domestic sales prices. The following data are available:
$25
Domestic unit sales price
Unit manufacturing costs:
Variable
Fixed
9
5
The differential cost from the acceptance of the offer is
O $700,000
b. $252,000
$448,000
Od $140,000
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