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 60% of its overhead. Alpha should:

a. Buy Beta since the relevant cost to make it is $48.

b. Buy Beta since the relevant cost to make it is $72.

c. Make Beta since the relevant cost to make it is $48.

d. Buy Beta since the relevant cost to make it is $56.

e. Make Beta since the relevant cost to make it is $56.