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Epsilon Company can produce a unit of product for the following costs: Direct material $ 7.30 Direct labor 23.30 Overhead 36.50 Total product costs per
Epsilon Company can produce a unit of product for the following costs: Direct material $ 7.30 Direct labor 23.30 Overhead 36.50 Total product costs per unit $ 67.10 An outside supplier offers to provide Epsilon with all the units it needs at $60.15 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to: Multiple Choice Make since the relevant cost to make it is $41.55.
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