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

Direct material$7.40Direct labor23.40Overhead37.00Total costs per unit$67.80

An outside supplier offers to provide Factor with all the units it needs at $39.90 per unit. If Factor buys from the supplier, the company will still incur 70% of its overhead. Factor should choose to:

Factor Co. can produce a unit of product for the following costs: Direct material 5!; 146 Direct labor 23.46 Overhead 3?.86 Total costs per' unit $6186 An outside supplier offers to provide Factor with all the units it needs at $39.90 per uniL If Factor buys from the supplier, the company will still incur 70% of its overhead. Factor should choose to