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

---

Definitions:

Unequal Treatment

The act of treating someone or a group of people less favorably than others without a reasonable justification, often based on factors such as race, gender, age, or ethnicity.

Aversive Racism

A form of racism that manifests in subtle, often unconsciously held negative feelings or beliefs about people of other races despite conscious support for equality and justice.

Egalitarian Values

Refers to the belief in the equality of all people, advocating for equal rights and opportunities without discrimination.

Minority Groups

Social groups that are marginalized, have fewer privileges, or are less powerful than the dominant segments of society.