Factor Company estimates that producing a unit of product would require $8.90 per unit of direct materials and $24.90 per unit of direct labor. Factor Company normally applies overhead using a predetermined overhead rate of 150% of direct labor cost. Factor Company estimates incremental overhead of $17.80 per unit of product. An outside supplier offers to provide Factor Company with all the units it needs at a price of $49.60 per unit. Factor Company should choose to:

Multiple Choice

Buy since the relevant cost to make it is $60.50.

Make since the relevant cost to make it is $33.80.

Make since the relevant cost to make it is $51.60.

Buy since the relevant cost to make it is $51.60.

Buy since the relevant cost to make it is $33.80.