6 Factor Co. can produce a unit of product for the following costs:

Direct material	$	8.10
Direct labor		24.10
Overhead		40.50
Total product cost per unit	$	72.70

An outside supplier offers to provide Factor with all the units it needs at $42.35 per unit. If Factor buys from the supplier, the company will still incur 70% of its overhead. Factor should choose to:

Multiple Choice

• Buy since the relevant cost to make it is $60.55.

• Buy since the relevant cost to make it is $32.20.

• Buy since the relevant cost to make it is $44.35.

• Make since the relevant cost to make it is $32.20.

• Make since the relevant cost to make it is $44.35.