Sage Company Is Operating at 90% of Capacity and Is

question 136

Multiple Choice

Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15 per unit.The unit cost for the business to make the part is $20,including fixed costs,and $11,not including fixed costs.If 30,000 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?

• A) $150,000 cost increase
• B) $120,000 cost decrease
• C) $150,000 cost increase.
• D) $120,000 cost increase

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Definitions:

Emotional Management

The ability to understand, control, and express one's emotions and to handle interpersonal relationships judiciously and empathetically.

Democratic Approach

A style of leadership or decision-making that involves the participation and input of all members of a group or organization.

Personal Commitment

An individual's dedication or promise to pursue a specific course of action or uphold certain values.

Relationship-motivated

Being driven by the desire to build and maintain meaningful connections with others, often prioritizing interpersonal relationships over task accomplishments.