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Question
Beta Inc. can produce a unit of Zed for the following costs:| Direct material | $ 10 |
| Direct labor | 20 |
| Overhead | 50 |
| Total costs per unit | $80 |
An outside supplier offers to provide Beta with all the Zed units it needs at $58 per unit. If Beta buys from the supplier, it will still incur 40% of its overhead. Beta should:
A. Buy Zed since the relevant cost to make it is $60.
B. Make Zed since the relevant cost to make it is $60.
C. Buy Zed since the relevant cost to make it is $80.
D. Make Zed since the relevant cost to make it is $30.
E. Buy Zed since the relevant cost to make it is $30.
Answer
This answer is hidden. It contains 76 characters.
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