During 2019, It Cost Westa, Inc

Multiple Choice

During 2019, it cost Westa, Inc. $18 per unit to produce part T5. During 2020, 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.