Question

Last year, it cost a company $18 per unit to produce part T5. During the current year, it has increased to $21 per unit. In the current year, another company has offered to provide Part T5 for $16 per unit. 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.

Answer 1

Answer:The answer is Net relevant cost $2per unit

Step-by-step explanation:

$

Market price per unit. 18

Relevant cost. . 16

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Relevant cost per unit. 2

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Therefore the Net relevant cost are $2per unit