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During 2021, it costs Miller, Inc. $14 per unit to produce part T5. During 2022, it has increased to $16 per unit. In 2021, King Company has offered to provide Part T5 for $13 per unit to Miller. As it pertains to the make-or-buy decision, which statement is true?
Differential costs are $4 per unit.
Incremental costs are $3 per unit.
Net relevant costs are $3 per unit.
Incremental revenues are $1 per unit.
Differential costs are $4 per unit.
Incremental costs are $3 per unit.
Net relevant costs are $3 per unit.
Incremental revenues are $1 per unit.
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