Bertha Inc. can produce a unit of Grit for the following costs:
Direct material $10
Direct labor 20
Overhead 50
Total costs per unit $80
An outside supplier offers to provide Bertha with all the Grit units it needs at $58 per unit. If Bertha buys from the supplier, it will still incur 40% of its overhead. Bertha should:
Group of answer choices
Buy Grit since the relevant cost to make it is $80.
Make Grit since the relevant cost to make it is $30.
Make Grit since the relevant cost to make it is $60.
Buy Grit since the relevant cost to make it is $60.
Buy Grit since the relevant cost to make it is $30.