During 2016, It Cost Westa, Inc

Multiple Choice

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?

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.