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33 OOOO 25 points Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15

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33 OOOO 25 points 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 fed 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? $120,000 cost increase $150,000 cost increase $150,000 cost decrease $120,000 cost decrease 35 3 points Format #2 Sales Format #1 Sales Cost of Goods Sold Gross Profit Selling & Administrative Expenses Income from operations 2,200,000 700.000 2,200,000 1,430,000 770,000 730,000 40,000 1,500,000 Variable Costs Contribution Margin Fixed Costs Fixed Manufacturing Costs Fixed Selling & Administrative Exp. Income from Operations 757.000 703.000 40,000 What's the name of each format above: O Format 1 is Contribution Margin Format and Format 2 is Absorption Format Format 1 is Absorption Format and Format 2 is Fixed Format Format 1 is Absorption Format and Format 2 is Variable Format Format 1 is Gross Profit Format and Format 2 is Contribution Margin Format 36 25 points Format #1 Sales Cost of Goods Sold Gross Profit Selling & Administrative Expenses Income from operations 2,200,000 1,430,000 770,000 730,000 40,000 2,200,000 700,000 1,500,000 Format #2 Sales Variable Costs Contribution Margin Fixed Costs: Fixed Manufacturing Costs Fixed Selling & Administrative Exp. Income from Operations 757,000 703,000 40,000 Assuming 1,000,000 units were sold in each of the statements above, the break-even point in units is: O 1,000,000 units 973,333 units 948.052 units 663,636 units

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