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