During 2015, It Cost Westa, Inc

Multiple Choice

During 2015, it cost Westa, Inc.$12 per unit to produce Part T5.During 2016, it has increased to $14 per unit.In 2016, Southside Company has offered to provide Part T5 for $9 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 $3 per unit.
C) Net relevant costs are $3 per unit.
D) Incremental revenues are $2 per unit.