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Epsilon Company can produce a unit of product for the following costs: Direct material $ 7.70 Direct labor Overhead 23.70 38.50 Total product costs
Epsilon Company can produce a unit of product for the following costs: Direct material $ 7.70 Direct labor Overhead 23.70 38.50 Total product costs per unit $ 69.90 An outside supplier offers to provide Epsilon with all the units it needs at $62.35 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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