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Epsilon Co. can produce a unit of product for the following costs: Direct material $ 7.40 Direct labor 23.40 Overhead 37.00 Total costs per unit

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

Direct material $ 7.40

Direct labor 23.40

Overhead 37.00

Total costs per unit $ 67.80

An outside supplier offers to provide Epsilon with all the units it needs at $60.70 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to

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