Sage Company is operating at 90% of capacity and is currently purchasing a part used...
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Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $17.00 per unit. The unit cost for the business to make the part is $22.00, including fixed costs, and $10.00, not including fixed costs. If 35,088 units of the part are normally purchased during the year but could be manufactured using unused capacity, the amount of differential cost increase or decrease from making the part rather than purchasing it would be a
A- $245,616 cost increase
B- $245,616 cost decrease
C- $ 175,440 cost increase
D- $ 596,496 cost decrease
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $17.00 per unit. The unit cost for the business to make the part is $22.00, including fixed costs, and $10.00, not including fixed costs. If 35,088 units of the part are normally purchased during the year but could be manufactured using unused capacity, the amount of differential cast increase or decrease from making the part rather than purchasing it would be a Os $345.616 incase Ob. 245,616 dese Oc. 1171.440 come
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