20.

The cost to produce Part A was $23 per unit in 2021. During 2022, it increased to $26 per unit. In 2022, Ivanhoe Company has offered to supply Part A for $20 per unit. No fixed costs are avoidable. For the make-or-buy decision,

differential costs are $6 per unit.

incremental costs are $3 per unit.

incremental revenues are $6 per unit.

net relevant costs are $3 per unit.