outsourcing problem. please explain steps.

Example 3 Epsilon Co. can produce a unit of product for the following costs: - DM: $8 - DL: $24 - OH: $40 An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. What should Epsilon choose and what is the relevant cost? Solution: Costs if Outsourcing Costs if kept in house