Epsilon Co. can produce a unit of product for the following costs shown below. An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to: Direct Materials $8 Direct Labor $24 Overhead $40 Total Cost/Unit $72 Buy since the relevant cost to make it is $72. Make since the relevant cost to make it is $56. Buy since the relevant cost to make it is $48. Make since the relevant cost to make it is $48. Buy since the relevant cost to make it is $56.

Epsilon Co can produce a unit of product for the following costs shown below. An outside supplier offers to provide Epsilon with all the units it needs at 560 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to Buy since the relevant cost to make it is $72 Make since the relevant cost to make it is $56. Buy since the relevant cost to make it is $48 Make since the relevant cost to make it is $48 Buy since the relevant cost to make it is $56