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Artemon [7]
3 years ago
12

Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $16.00

per unit. The unit cost for the business to make the part is $20.00, including fixed costs, and $11.00, excluding fixed costs. If 32,842 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it
Business
1 answer:
lara [203]3 years ago
6 0

Answer:

$164,210 decrease

Explanation:

Calculation to determine what would be the amount of differential cost increase or decrease from making the part rather than purchasing it

Differential cost increase or decrease=(32,842 * 16)- (32,842 * 11)=

Differential cost increase or decrease=$525,472-$361,262

Differential cost increase or decrease=$164,210 decrease

Therefore what would be the amount of differential cost increase or decrease from making the part rather than purchasing it is $164,210 decrease

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KonstantinChe [14]

Answer:

Explanation:

Available for sale securities are required to be reported at fair value.

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8 0
2 years ago
Travis has a 2,400 square foot home. He is self employeed and uses one room of his home exclusively for his business. The area o
Montano1993 [528]

Answer:

$500;$810

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Based on the information given we were told that he painted his office and replaced the door at a cost of the amount of $500 which means that Travis has the amount of $500 in deductible direct expenses

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First step is to calculate the utilities

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Deductible indirect expenses=$300+$150+$360

Deductible indirect expenses=$810

Therefore Travis has $500 in deductible direct expenses and $810 in deductible indirect expenses.

4 0
2 years ago
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