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:

Beta should buy from the outside supplier

Explanation:

If Beta produces the product itself, only avoidable costs would be accounted for:

= Direct labor + Direct material + Unavoidable overhead

= 10 + 20 + ( (1 - 40%) * 50)

= 10 + 20 + 30

= $60

If however, Beta buys the product, they will buy at $58 per unit which is less than the $60 they would make it for.

Beta should buy the product because they will be able to save $2 per unit.

(i know i'm late but the answer's "things about yourself" because you want to list things you're capable of, why you want to open up the business, the amount of money you're putting into it,etc.) i'm guessing you take online school small business, the answers to the quizzes are all over quizlet. just look up your question and type quizlet after it and it'll pop up.