How much of the unit product cost of $54.90 is relevant in the decision of whether to make or buy the part?

A) $37.80 per unit
B) $46.70 per unit
C) $54.90 per unit
D) $19.00 per unit

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and overhead.

Make or Buy

Decision-making process used by firms to choose between manufacturing a product in-house or purchasing it from an external supplier.

Relevant Decision

A decision-making process that involves choosing among various options based on their potential impact on key business outcomes.