Question: During 2 0 2 1 , it cost Coronado Inc. $ 1 2 per unit to produce Part T 5 . During 2 0 2

During 2021, it cost Coronado Inc. $12 per unit to produce Part T5. During 2022, the cost has increased
to $14 per unit. In 2022, Sandhill Company has offered to sell the Part T5 for $8 per unit to Coronado.
With regard to the make-or-buy decision, which statement is true?
Incremental costs are $4 per unit.
Incremental revenues are $2 per unit.
Net relevant costs are $4 per unit.
Differential costs are $6 per unit.

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