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

Direct material	$7.10
Direct labor	23.10
Overhead	35.50
Total costs per unit	$65.70

An outside supplier offers to provide Epsilon with all the units it needs at $59.05 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to:

Multiple Choice

• Buy since the relevant cost to make it is $65.70.

• Buy since the relevant cost to make it is $55.05.

• Make since the relevant cost to make it is $55.05.

• Make since the relevant cost to make it is $40.85.

• Buy since the relevant cost to make it is $40.85.