mutiple choice 2

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 decrease b. $150,000 cost decrease $120,000 cost increase d. $150,000 cost increase QUESTION 27 Discontinuing a product or segment is a huge decision that must be carefully analyzed. Which of the following would be a valid reason not to discontinue an operation? a. Variable costs are less than revenues b. Losses are minimal. c Variable costs are more than revenues. d. Allocated fixed costs are more than revenues