I don't need ai answer In 2016, It cost Marigold Corp. $9 per unit to produce part T5. In2017, it has increased to $12 per unit. In 2017, Southside Companyhas offered to provide Part T5 for $7 per unit to Westa. As itpertains to the make-or-buy decision, which statement is true?a. Incremental costs are $2 per unit.b. Incremental revenues are $3 per unit.c. Net relevant costs are $2 per unit.d. Differential costs are $5 per unit.

Step 1: Define Relevant CostingRelevant costing is a technique used in management accounting to…

Answered: In 2016, It cost Marigold Corp. $9 per…

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 16E

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In 2023, it cost Silverline Corp. $15 per unit to produce Part B4. In 2024, the cost increased to $18 per unit. In the same year, BlueRock Ltd. has offered to supply Part B4 for $11 per unit. Which of the following is true? a. Incremental costs are $4 per unit. b. Incremental revenues are $7 per unit. c. Net relevant costs are $4 per unit. d. Differential costs are $7 per unit.
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Ac

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