Question

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.

Answer 1

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.