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

Direct material$7.60Direct labor23.60Overhead38.00Total product costs per unit$69.20

An outside supplier offers to provide Epsilon with all the units it needs at $59.90 per unit. If Epsilon buys from the supplier, the company will still incur 35% of its overhead. Epsilon should choose to:

Multiple Choice

• Buy since the relevant cost to make it is $55.90.
• Make since the relevant cost to make it is $55.90.
• Make since the relevant cost to make it is $44.50.
• Buy since the relevant cost to make it is $69.20.
• Buy since the relevant cost to make it is $44.50.