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Question: Brown Corporation can produce a unit of Amber product for the following costs Direct Materials $8.00 Direct Labor $24.00 Overhead $40.00 Total Cost per Unit $72.00 An outside supplier offers to provide Brown Corporation with all the units of Amber that it needs at $60 per unit. If Brown Corporation buys from the supplier, Brown Corporation will still incur 40% of its current overhead. Based on this information, Brown Corporation should: Group of answer choices Buy Amber since the relevant cost to make it is $48 per unit. Make Amber since the relevant cost to make it is $56 per unit. Buy Amber since the relevant cost to make it is $72 per unit. Make Amber since the relevant cost to make it is $48 per unit.
The company's selling and Administration expenses consist of $300,000 per year in fixed expenses. Calculate the cost per unit under absorption costing
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