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For Hosmer Company, the cost to produce Component Part A was $10 per unit in...

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Accounting

For Hosmer Company, the cost to produce Component Part A was $10 per unit in the previous year. During the current year, the cost to produce Component Part A has increased to $11 per unit. In the current year, a potential supplier has offered to supply Component Part A to Hosmer Company for $9 per unit. For the make-or-buy decision,

Group of answer choices

Incremental costs are $1 per unit.

Incremental revenues are $2 per unit.

Differential costs are $2 per unit.

Net relevant costs are $1 per unit.

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