Business, 06.05.2020 21:32 starwars77
Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8.10 Direct labor 24.10 Overhead 40.50 Total costs per unit $ 72.70 An outside supplier offers to provide Epsilon with all the units it needs at $64.55 per unit. If Epsilon buys from the supplier, the company will still incur 30% of its overhead. Epsilon should choose to:
Multiple Choice
a. Buy since the relevant cost to make it is $72.70.
b. Make since the relevant cost to make it is $60.55.
c. Buy since the relevant cost to make it is $44.35.
d. Make since the relevant cost to make it is $44.35.
e. Buy since the relevant cost to make it is $60.55.
Answers: 3
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Epsilon Co. can produce a unit of product for the following costs: Direct material $ 8.10 Direct lab...
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