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

Direct material	$	8.20
Direct labor		24.20
Overhead		41.00
Total costs per unit	$	73.40

An outside supplier offers to provide Factor with all the units it needs at $44.75 per unit. If Factor buys from the supplier, the company will still incur 65% of its overhead. Factor should choose to:

Multiple Choice

Buy since the relevant cost to make it is $46.75.

Buy since the relevant cost to make it is $59.05.

Buy since the relevant cost to make it is $32.40.

Make since the relevant cost to make it is $32.40.

Make since the relevant cost to make it is $46.75.

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