The cost to produce Part A was $33 per unit in 2021. During 2022, it...

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Accounting

The cost to produce Part A was $33 per unit in 2021. During 2022, it increased to $36 per unit. In 2022, Cullumber Company has offered to supply Part A for $27 per unit. No fixed costs are avoidable. For the make-or-buy decision,
incremental costs are $3 per unit.
net relevant costs are $3 per unit.
differential costs are $9 per unit.
incremental revenues are $9 per unit.
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