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. For a cost of revenue to be relevant to a particular decision, the cont or revenue must a. Differ between the alternatives being considered b. He a past cost Be a future coal Differ between the alternatives being considered and be a future cost or revenue 24. MB Industries manufactures 15,000 components per year. Their manufacturing costs are: Direct materials Direct labor $150,000 Variable overhead $240,000 Fixed overhead $90,000 $120,000 There are no alternative uses for the facilities used in making the components. An outside supplier is offering to sell the component to MB for $34 per unit. Should MB make or buy the component? . Make, because otherwise (if it buys). Buy, because otherwise (if it makes). income would decrease by $30,000 C. income would decrease by $30,000 b. Make, because otherwise (if it buys). d. Buy, because otherwise (if it makes), income would increase by $30,000 income would increase by $30,000 25. You are given the following decision schedule for a "product line" decision ("keep or drop") prepared by someone who did not study Accounting 306: Schedule if Product OC is eliminated: Relevant revenue (lost) $(12,448.75) Relevant costs avoided: Variable costs $7,500.00 Depreciation (scheduled to continue for 3 years) 6,400.00 Relevant income $ 1,451.25 commend is You are asked to check this schedule and decide whether to keep or drop the product. The best decision to correct Drop the product because the schedule is c. Drop the product because the schedule is not correct correct Keep the product because the schedule is d. Keep the product because the schedule is not correct