Answer:
d) Make, Increase in profits $434,000
Explanation:
Differential analysis
Make Buy
Direct material (62000I*32) $1,984,000
Direct labor (62000*12) $744,000
Variable overhead (62000*15) $930,000
Purchase cost <u> </u> (62000*66) <u>$4,092,000</u>
Total relevant cost <u>$3,658,000</u> <u>$4,092,000</u>
So, the Company Should make because the cost is lower. Increase in profits $434,000 ($,092,000-$3,658,000)