Solution-Which option should be selected and why

Which option should be selected and why

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Question - Omega DB is currently buying 50,000 motherboard from MBoard, Inc. at a price of P65 per board. Omega DB is considering making its own boards. The costs to make the board are as follows: Direct Materials P32 per unit, Direct labor P10 per unit, Variable Factory Overhead P16.00, Fixed Costs for the plant would increase by P75,000. Which option should be selected and why?

a. Buy- 275,000 more in profit

b. Make - 350,000 increase in profit

c. Buy - 75,000 more in profit

d. Make - 275,000 increase in profit

Reference no: EM132868569

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Which option should be selected and why

Reference no: EM132868569

Reference no: EM132868569

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