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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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Answer:

B) Sales discounts.

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4 0
3 years ago
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4 0
2 years ago
I want to know what is the correct thing to invest into
vladimir1956 [14]

Answer:

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7 0
3 years ago
A company's issued share capital throughout an accounting period consists of 500,000 common shares of 20 cent each and 100,000 p
ella [17]

Answer:

a. $0.30

Explanation:

Basic Earning Per Share (BEPS) = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stock.

Earnings Attributable to Holders of Common Stock calculation :

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Basic Earning Per Share (BEPS) = $150,000 ÷ 500,000

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