A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $168 per unit (100 bottles), including fixed costs of $37 per unit. A proposal is offered to purchase small bottles from an outside source for $104 per unit, plus $7 per unit for freight.

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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".

Make Bottles (Alternative 1)Buy Bottles (Alternative 2)Differential Effect (Alternative 2)Unit costs: Purchase price$fill in the blank 0dfdb7f5203bf9b_1$fill in the blank 0dfdb7f5203bf9b_2$fill in the blank 0dfdb7f5203bf9b_3Freightfill in the blank 0dfdb7f5203bf9b_4fill in the blank 0dfdb7f5203bf9b_5fill in the blank 0dfdb7f5203bf9b_6Variable costsfill in the blank 0dfdb7f5203bf9b_7fill in the blank 0dfdb7f5203bf9b_8fill in the blank 0dfdb7f5203bf9b_9Fixed factory overheadfill in the blank 0dfdb7f5203bf9b_10fill in the blank 0dfdb7f5203bf9b_11fill in the blank 0dfdb7f5203bf9b_12Total unit costs$fill in the blank 0dfdb7f5203bf9b_13$fill in the blank 0dfdb7f5203bf9b_14$fill in the blank 0dfdb7f5203bf9b_15

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

Buy the bottlesMake the bottles

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