Factor Co. can produce a unit of product for the following costs: Direct material Direct labor Overhead Total product cost per unit $ 7.20 23.20 36.00 $66.40 An outside supplier offers to provide Factor with all the units it needs at $42.80 per unit. If Factor buys from the supplier, the company will still incur 60% of its overhead. Factor should choose to Multiple Choice C) Buy since the relevant cost to make it is $52.00 Make since the relevant cost to make it is $4480 O o ooo Buy since the relevant cost to make it is $44.80. Make since the relevant cost to make it $30.40. Buy since the relevant to make 500 Markson Company had the following results of operations for the past year. $ 166,400 Sales (8,000 units at $20.80) Variable manufacturing costs Pixed manufacturing costs Variable administrative expenses Fixed selling and administrative expenses Operating income $89,200 15,800 15,200 20,800 (141,000) $ 25,400 A foreign company offers to buy 2.000 units at $15.20 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $1,680 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will Multiple Choice Decrease by $5,980. Increase by $2,620. Decrease by S4,850. Decrease by $1,680. Increase by $4,300