The Cost to Produce Part a Was $20 Per Unit

question 30

Multiple Choice

The cost to produce Part A was $20 per unit in 2013 and in 2014 it has increased to $22 per unit. In 2014, Supplier ABC has offered to supply Part A for $18 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

---

Definitions:

Diagnostic Proteins

Proteins used as biomarkers for identifying or monitoring the progression of diseases.

Transposable Elements

Segments of DNA that can move within the genome, playing a significant role in genetic variability and evolution.

Human Genome

The complete set of nucleic acid sequences for humans, encoded as DNA within the 23 chromosome pairs in the nucleus, and in a small DNA molecule found within individual mitochondria.

Regulator Genes

Genes that control the expression of one or more other genes, governing the amount of protein or RNA product that is made.