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Factor Co. can produce a unit of product for the following costs: Direct material $8.30 Direct labor 24.30 Overhead 41.50 Total costs per unit $74.10

Factor Co. can produce a unit of product for the following costs: Direct material $8.30 Direct labor 24.30 Overhead 41.50 Total costs per unit $74.10 An outside supplier offers to provide Factor with all the units it needs at $47.20 per unit. If Factor buys from the supplier, the company will still incur 60% of its overhead. Factor should choose to:

Buy since the relevant cost to make it is $57.50.

Make since the relevant cost to make it is $49.20.

Buy since the relevant cost to make it is $49.20.

Buy since the relevant cost to make it is $32.60.

Make since the relevant cost to make it is $32.60.

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