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

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

An outside supplier offers to provide Factor with all the units it needs at $45.50 per unit. If Factor buys from the supplier, the company will still incur 70% of its overhead. Factor should choose to:

		Make since the relevant cost to make it is $47.50.
		Buy since the relevant cost to make it is $34.00.
		Make since the relevant cost to make it is $34.00.
		Buy since the relevant cost to make it is $47.50.
		Buy since the relevant cost to make it is $65.50.