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The Alliance For Global Education Operations And Supply Chain Management Assignment Help - An outside supplier

Question - Alpha Co. can produce a unit of Beta for the following costs: Direct material $8 Direct labor 24 Overhead 40 Total costs per unit $72 An outside supplier offers to provide Alpha with all the Beta units it needs at $60 per unit. If Alpha buys from the supplier, Alpha will still incur 40% of its overhead. Alpha should: Buy Beta since the relevant cost to make it is $72. Make Beta since the relevant cost to make it is $56. Buy Beta since the relevant cost to make it is $48. Make Beta since the relevant cost to make it is $48. Buy Beta since the relevant cost to make it is $56.

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