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Question 1: The cost to produce Part A was $20 per unit in 2012. During 2013, it has increased to $23 per unit. In 2013, Supplier Company has offered to supply Part A for $18 per unit. For the make-or-buy decision,
a)incremental revenues are $5 per unit.
b)net relevant costs are $3 per unit.
c)differential costs are $5 per unit.
d)incremental costs are $3 per unit.
Question 2: Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered:
Old Machine
New Machine
If the old machine is replaced, it can be sold for $24,000. Which of the following amounts is relevant to the replacement decision?
$300,000
$59,400
$210,000
$90,000
strong wood company is a distributor of patio furniture. data concerning the next months budget appear below.selling
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