Sage Company Is Operating at 90% of Capacity and Is

question 54

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, the amount of differential cost increase or decrease from making the part rather than purchasing it would be a

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

Analyze the factors leading to group polarization and risky shift phenomena.

Identify the presence and impact of biases in group decision-making.

Explain the concept of groupthink, its causes, and its symptoms.

Understand the importance of effectively pooling information within groups.

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Definitions:

Democratic Countries

Nations that operate under a system of government in which power is vested in the people, who rule either directly or through freely elected representatives, emphasizing principles such as political equality, pluralism, and civil liberties.

World's Population

The total number of people living on Earth at any given time.

Percent

A means of expressing a number as a fraction of 100.

Richest 1 Percent

The segment of the population that holds a disproportionally large share of a country's wealth, often used in discussions on inequality.