Response to the following questions:
1. Explain the meaning of (a) differential revenue, (b) differential cost, and (c) differential income.
2. It was reported that Exabyte Corporation, a fast growing Colorado marketer of computer devices has decided to purchase key components of its product from others. For example, Sony Corporation of America and Solectron Corporation provide components to Exabyte. A former chief executive officer of Exabyte stated, "If we'd tried to build our own plants, we could never have grown that fast or maybe survived." The decision to purchase key product components is an example of what type of decision illustrate?