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5) The cost to produce Product A was $30 per unit last year and at present year it has increased to $32 per unit. At
5) The cost to produce Product A was $30 per unit last year and at present year it has increased to $32 per unit. At present time, Supplier "X" has offered to supply Product A for $28 per unit. For the make-or-buy decision: A) incremental revenues are $4 per unit B) incremental costs are $2 per unit C) net relevant costs are $2 per unit D) differential costs are $4 per unit Answer: ID 6) The cost to produce Part A was $20 per unit in 2013 and in 2014 it has increased to $22 per unit. In 2014, Supplier ABC has offered to supply Part A for $18 per unit, For the make- or-buy decision: A) incremental revenues are $4 per unit B) incremental costs are $2 per unit C) net relevant costs are $2 per unit D) differential costs are $4 per unit Answer: D
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