Question

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.

Answer 1

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, $C_{man}=\ 36$

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

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:

$\textrm{Differential cost}=C_{mod}-C_{man}\\\textrm{Differential cost}=\ 48-\ 36=\ 12$

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