During 2019, it cost Marigold Corp. $18 per unit to produce part T5. During 2020, it has increased to $26 per unit. In 2020, Southside Company has offered to provide Part T5 for $15 per unit to Marigold. As it pertains to the make-or-buy decision, which statement is true?

Net relevant costs are $3 per unit.

Differential costs are $11 per unit.

Incremental costs are $3 per unit.

Incremental revenues are $8 per unit.

Vaughn Manufacturing has the following costs when producing 100000 units:

Variable costs	$600000
Fixed costs	900000

An outside supplier has offered to make the item at $4.50 a unit. If the decision is made to purchase the item outside, current production facilities could be leased to another company for $167000. The net increase (decrease) in the net income of accepting the suppliers offer is

$(17000).

$832000.

$283000.

$317000.