The cost to produce Part A was $20 per unit in 2016.During 2017, it has increased to $23 per unit.In 2017, Supplier Company has offered to supply Part A for $18 per unit.For the make-or-buy decision,
A)incremental revenues are $5 per unit.
B)incremental costs are $3 per unit.
C)net relevant costs are $3 per unit.
D)differential costs are $5 per unit.

Question

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The Answer of The cost to produce Part A was $20 per unit in 2016.During 2017, it has increased to $23 per unit.In 2017, Supplier Company has offered to supply Part A for $18 per unit.For the make-or-buy decision,
A)incremental revenues are $5 per unit.
B)incremental costs are $3 per unit.
C)net relevant costs are $3 per unit.
D)differential costs are $5 per unit.

The Cost to Produce Part a Was $20 Per Unit