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Epsilon Co. can produce a unit of product for the following costs: Direct material $7.80 Direct labor 23.80 Overhead 39.00 Total costs per unit $70.60
Epsilon Co. can produce a unit of product for the following costs: Direct material $7.80 Direct labor 23.80 Overhead 39.00 Total costs per unit $70.60 An outside supplier offers to provide Epsilon with all the units it needs at $59.00 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to:
A.Buy
B.make
Ceither make or buy because they are the same
D.buy half or make half
E. Not enough info to determine
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