Question: Saved Help Save & Exit Submit Epsilon Co. can produce a unit of product for the following costs: Direct material Direct labor Overhead Total product
Saved Help Save & Exit Submit Epsilon Co. can produce a unit of product for the following costs: Direct material Direct labor Overhead Total product costs per unit $ 8.50 24.50 42.50 $75.50 An outside supplier offers to provide Epsilon with all the units it needs at $66.75 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to: Multiple choice C ) Buy since the relevant cost to make it is $75.50 Make since the relevant cost to make it is $6275. c ) Buy since the relevant cost to make it is $45.75 o Make since the relevant cost to make it is $45.75
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