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

Direct material	$9.00
Direct labor	25.00
Overhead	45.00
Total costs per unit	$79.00

an outside supplier offers to provide Epsilon with all the units it needs at $69.50 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to:

A.Buy since the relevant cost to make it is $79.00. B. Make since the relevant cost to make it is $65.50. C. Buy since the relevant cost to make it is $47.50. D.Make since the relevant cost to make it is $47.50. E.Buy since the relevant cost to make it is $65.50.

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

Direct material	$8.60
Direct labor	24.60
Overhead	43.00
Total costs per unit	$76.20

An outside supplier offers to provide Factor with all the units it needs at $48.40 per unit. If Factor buys from the supplier, the company will still incur 60% of its overhead. Factor should choose to:

A.Buy since the relevant cost to make it is $59.00. B.Make since the relevant cost to make it is $50.40. C.Buy since the relevant cost to make it is $50.40. D.Make since the relevant cost to make it is $33.20. E. Buy since the relevant cost to make it is $33.20.