If the total unit cost of manufacturing Product Y is currently $36 and the total unit cost after modifying the style is estimated to be $48, the differential cost for this situation is $48.

Respuesta :

The question is incomplete. The question is asking whether the given statement is TRUE or FALSE.

Answer:

The given statement is FALSE.

Step-by-step explanation:

Given:

Total unit cost of manufacturing product Y is, [tex]C_{man}=\$36[/tex]

Total unit cost after modifying the style is, [tex]C_{mod}=\$48[/tex]

So, the differential cost for this situation is given as the difference of the modifying cost and manufacturing cost.

Therefore, the differential cost is given as:

[tex]\textrm{Differential cost}=C_{mod}-C_{man}\\\textrm{Differential cost}=\$48-\$36=\$12[/tex]

Hence, the given statement is false and the correct value for differential cost for this situation is $12.