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If the total unit cost of manufacturing Product Y is currently $36 and the total unit cost after modifying the style is estimated to be $48, the differential cost for this situation is $48.

1 Answer

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The question is incomplete. The question is asking whether the given statement is TRUE or FALSE.

Answer:

The given statement is FALSE.

Explanation:

Given:

Total unit cost of manufacturing product Y is,
C_(man)=\$36

Total unit cost after modifying the style is,
C_(mod)=\$48

So, the differential cost for this situation is given as the difference of the modifying cost and manufacturing cost.

Therefore, the differential cost is given as:


\textrm{Differential cost}=C_(mod)-C_(man)\\\textrm{Differential cost}=\$48-\$36=\$12

Hence, the given statement is false and the correct value for differential cost for this situation is $12.

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