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

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Accounting

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Epsilon Co. can produce a unit of product for the following costs: Direct material Direct labor Overhead Total costs per unit $8.30 24.30 4150 $7410 An outside supplier offers to provide Epsilon with all the units it needs at $61.50 per unit. If Epsilon buys from the supplier, the company will still incur 40% of its overhead. Epsilon should choose to: OBuy since the relevant cost to make it is $74.10. O Make since the relevant cost to make it is $57.50 OBuy since the relevant cost to make it is $49.20. Make since the relevant cost to make it is $49.20. O Buy since the relevant cost to make it is $5750. Bluebird Mfg, has received a special one-time order for 15,000 bird feeders at $2.80 per unit. Bluebird currently produces and sells 75,000 units at S6.80 each. This level represents 80% of its capacity Production costs for these units are $3.60 per unit, which includes $2.15 variable cost and $1.45 fixed cost. If Bluebird accepts this additional business, the effect on net income will be O $42.000 increase. O $9,750 increase. $32,250 increase. O $12.000 decrease $32.250 decrease

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