Question
Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8.60 Direct labor 24.60 Overhead 43.00 Total costs per unit
Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8.60 Direct labor 24.60 Overhead 43.00 Total costs per unit $ 76.20 An outside supplier offers to provide Epsilon with all the units it needs at $63.00 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to: Multiple Choice Buy since the relevant cost to make it is $59.00. Buy since the relevant cost to make it is $50.40. Make since the relevant cost to make it is $59.00. Make since the relevant cost to make it is $50.40. Buy since the relevant cost to make it is $76.20.
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