During 2021 it cost Westa Inc.$18 per unit to produce part T5.During 2022 it has increased to $21 per unit.In 2022 Southside Company has offered to provide Part T5 for $16 per unit to Westa.As it pertains to the make-or-buy decision which statement is true?
A) Differential costs are $5 per unit.
B) Incremental costs are $2 per unit.
C) Net relevant costs are $2 per unit.
D) Incremental revenues are $3 per unit.
Correct Answer:
Verified
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