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Alpha Co. can produce a unit of Beta for the following costs: Direct material $ 8 Direct labor.. 24 Overhead . . . ............... 40

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Alpha Co. can produce a unit of Beta for the following costs: Direct material $ 8 Direct labor.. 24 Overhead . . . ..............." 40 Total costs per unit ....... $72 An outside supplier offers to provide Alpha with all the Beta units it needs at $60 per unit. If Alpha buys from the supplier, Alpha will still incur 40% of its overhead. Alpha should: Multiple Choice

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