QUESTION 2 24 Epsilon Co. can produce a unit of product for the following costs: Direct material Direct labor Overhead Total costs per unit S72 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. Epsilon should choose A. Buy since the relevant cost to make it is $56. B. Make since the relevant cost to make it is $48. Buy since the relevant cost to make it is $48. D. Make since the relevant cost to make it is $56. QUESTION 3 Chang Industries has 2,000 tables that cost $115 each to produce. Each table can be sold as is for $221 or finished with a stain or paint. The cost to add a finish to each table is $75. Finished tables can be sold for $310. Chang should: A. Sell the unfinished tables for profit of $195 per table. B. Finish the table for profit of $89 per table. OC.Sell unfinished tables for $106 incremental revenue per table. D. Finish the table for profit of $14 per table. QUESTION 4 Elliot Company can sell all of its products A and Z that it can produce, but it has limited production capacity. It can produce 8 units of A per hour or 10 units of Z per hour, and it has 20,000 production hours available. Contribution margin per unit is $12 for A and $10 for Z. What is the most profitable sales mix for Elliot Company? A. 84,000 units of A and 60,000 units of Z. B. O units of A and 200,000 units of Z. C. 48,000 units of A and 80,000 units of Z. D. 120,000 units of A and 0 units of Z