A company manufactures various$-$sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $$54$ per unit $(100$ bottles$),$ including fixed costs of $$20$ per unit. A proposal is offered to purchase small bottles from an outside source for $$39$ per unit, plus $$3$ per unit for freight.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

Prepare a differential analysis dated February $18$ to determine whether the company should make $($Alternative $1)$ or buy $($Alternative $2)$ the bottles, assuming fixed costs are unaffected by the decision. If an amount isyzero, enter $"0".$ Enter unit costs as positive values. Use a minus sign to indicate negative Differential Effects.

Differential Analysis

Make $($Alt$.1)$ or Buy $($Alt$.2)$ Bottles

February $18$

$\backslash$table$[[$Make$,$Buy,Differential$],[$Bottles$,$Bottles,Effects$],[($Alternative $1),($Alternative $2),($Alternative $2)]]$

Unit costs:

Purchase price

Freight

Variable costs

Fixed factory overhead

Total unit costs

$$

$$

$$

$$ $

$$

$$

$$

$$

$$

$$ $ $

$ $$

$$

$$

$$

$$ $