The Cost to Produce Part a Was $5 Per Unit

Multiple Choice

The cost to produce Part A was $5 per unit in 2019.During 2020, it has increased to $8 per unit.In 2020, Supplier Company has offered to supply Part A for $6 per unit.For the make-or-buy decision,

A) incremental revenues are $1 per unit.
B) incremental costs are $3 per unit.
C) net relevant costs are $3 per unit.
D) differential costs are $2 per unit.