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Sage Company is operating at 90% of capacity and is currently purchasing a part used...

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Accounting

Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15.00 per unit. The unit cost for the business to make the part is $22.00, including fixed costs, and $11.00, not including fixed costs. If 35,953 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
2. $539,295 cost decrease
b. $143,812 cost decrease
c. $251,671 cost increase
d. $143,812 cost increaseN
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