ICuines$/49920$A$/$tabe

$25$ pts

Question $5$

Epstion Company can produce a unit of product for the tollowing costs

Direct material

$$8\mathrm{.}70$

Direct labor

$24\mathrm{.}70$

Overhead

$43\mathrm{.}50$

Total product costs per unit $$76\mathrm{.}90$

An outside supplier offers to provide Epstion with all the units it needs at $567\mathrm{.}85$ per wirt it Epsition burs from the supplier, the company will still incur $30\%$ of tis ovethead Epplion should choose to$.$

hase since the rel ant cost to movel it is $564$ AS

Bur since the relerant cost to molke li tis $56385$

Bur since the relerant cost to make $11$ is $546\mathrm{.}45.$

Make since the rderant cost to make $$ is $56385.$

Purs since the relerant cost to mixee it is $576\mathrm{.}90.$

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