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Question 1: Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $18.00 per unit. The unit cost for the business to make the part is $22.00, including fixed costs, and $12.00, not including fixed costs. If 39,741 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. $158,964 cost increase
b. $715,338 cost decrease
c. $238,446 cost increase
d. $238,446 cost decrease
a company is considering replacing an old piece of machinery which cost 600000 and has 350000 of accumulated
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Guagliano Corporation produces and sells a single product whose selling price is $110.00 per unit and whose variable expense is $29.70 per unit. The company's monthly fixed expense is $345,290.
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