Answer the Following Question(s)using the Information Below

Multiple Choice

Answer the following question(s) using the information below.Central Medical Supply Inc., a manufacturer of medical testing equipment, has $240,000 worth of an obsolete line of testing equipment.The obsolete equipment can be adapted to fit another line of testing equipment at a cost of $64,000; the market value would then be $136,000.However, Tripac offered to purchase the obsolete equipment as is for $88,000.
-For make-or-buy decisions, relevant costs include

A) direct material costs plus direct labour costs.
B) incremental costs plus opportunity costs.
C) differential costs plus sunk costs.
D) incremental costs plus fixed costs.
E) variable costs plus fixed overhead.