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Hide or show questions Progress:40/78 items Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations

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  1. 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.$120,000 cost increase

    b.$150,000 cost increase

    c.$120,000 cost decrease

    d.$150,000 cost decrease

ABC Company has assets=$128,000 and liabilities=$89,000. Stockholders' equity should equal what amount?

$128,000 $44,000 $39,000 $84,000

he following is the adjusted trial balance for Stockton Company.

Stockton Company Adjusted Trial Balance December 31
Cash 5,824
Accounts Receivable 2,809
Prepaid Expenses 705
Equipment 14,565
Accumulated Depreciation 3,053
Accounts Payable 1,575
Notes Payable 4,378
Common Stock 1,000
Retained Earnings 9,966
Dividends 612
Fees Earned 8,153
Wages Expense 2,156
Rent Expense 809
Utilities Expense 317
Depreciation Expense 242
Miscellaneous Expense 86
Totals 28,125 28,125

Determine the total liabilities for the period.

$20,850

$5,953

$9,006

$10,966

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