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Epsilon Co. can produce a unit of product for the following: Direct material $8 Direct...

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Accounting

Epsilon Co. can produce a unit of product for the following:

Direct material $8

Direct labor 24

Overhead 40

Total costs per unit $72

An outside supplier offers to provide Epsilon with all the units it needs at $60 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to

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