The manager at Frame Manufacturing reported the cost to product Frame A was $22 per unit in 2011 and in 2012 the cost increased to $24 per unit.In 2013,the manager at a local supplier offered to supply Frame A for $20 per unit.For the make-or-buy decision:
A)incremental revenues are $4 per unit.
B)incremental costs are $2 per unit.
C)net relevant costs are $2 per unit.
D)differential costs are $4 per unit.
E)None of these are correct.

Question

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The Answer of The manager at Frame Manufacturing reported the cost to product Frame A was $22 per unit in 2011 and in 2012 the cost increased to $24 per unit.In 2013,the manager at a local supplier offered to supply Frame A for $20 per unit.For the make-or-buy decision:
A)incremental revenues are $4 per unit.
B)incremental costs are $2 per unit.
C)net relevant costs are $2 per unit.
D)differential costs are $4 per unit.
E)None of these are correct.

The Manager at Frame Manufacturing Reported the Cost to Product