A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $152 per unit (100 bottles), including fixed costs of $31 per unit. A proposal is offered to purchase small bottles from an outside source for $105 per unit, plus $7 per unit for freight.

a. Prepare a differential analysis dated January 25 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 is zero, enter "0".

Differential Analysis
Make Bottles (Alt. 1) or Buy Bottles (Alt. 2)
January 25
	Make Bottles (Alternative 1)	Buy Bottles (Alternative 2)	Differential Effect (Alternative 2)
Unit costs:
Purchase price	$fill in the blank 0dc7d2f36ff2015_1	$fill in the blank 0dc7d2f36ff2015_2	$fill in the blank 0dc7d2f36ff2015_3
Freight	fill in the blank 0dc7d2f36ff2015_4	fill in the blank 0dc7d2f36ff2015_5	fill in the blank 0dc7d2f36ff2015_6
Variable costs	fill in the blank 0dc7d2f36ff2015_7	fill in the blank 0dc7d2f36ff2015_8	fill in the blank 0dc7d2f36ff2015_9
Fixed factory overhead	fill in the blank 0dc7d2f36ff2015_10	fill in the blank 0dc7d2f36ff2015_11	fill in the blank 0dc7d2f36ff2015_12
Total unit costs	$fill in the blank 0dc7d2f36ff2015_13	$fill in the blank 0dc7d2f36ff2015_14	$fill in the blank 0dc7d2f36ff2015_15

b. Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles.