During 2016, it cost Westa, Inc. $18 per unit to produce part T5. During 2017,...
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Accounting
During 2016, it cost Westa, Inc. $18 per unit to produce part T5. During 2017, it has increased to $21 per unit. In 2017, Southside Company has offered to provide Part T5 for $16 per unit to Westa. As it pertains to the make-or-buy decision, which statement is true?
Select one:
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.
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