The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to $11 per unit

The cost to produce Part A was $10 per unit in 2005. During 2006, it has increased to $11 per unit. In 2006, Supplier Company has offered to supply Part A for $9 per unit. For the make-or-buy decision,

A.   incremental costs are $1 per unit

B.   net relevant costs are $1 per unit

C.   differential costs are $2 per unit

D.   incremental revenues are $2 per unit

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