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 $30.
D. Buy Zed since the relevant cost to make it is $80.
E. Make Zed since the relevant cost to make it is $30.
Answer: A
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