Business, 15.07.2020 01:01 aaronjin4443

Epsilon Co. can produce a unit of product for the following costs: Direct material$8.40
Direct labor24.40
Overhead42.00
Total costs per unit$74.80

An outside supplier offers to provide Epsilon with all the units it needs at $66.20 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to:

Buy since the relevant cost to make it is $74.80.

Make since the relevant cost to make it is $62.20.

Buy since the relevant cost to make it is $45.40.

Make since the relevant cost to make it is $45.40.

Buy since the relevant cost to make it is $62.20.

Answers: 1

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Epsilon Co. can produce a unit of product for the following costs: Direct material$8.40
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