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.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...
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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.
Transcribed Image Text: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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