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A restaurant bakes its own bread for a cost of $148 per unit (100 loaves), including fixed costs of $37 per unit. A proposal is

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A restaurant bakes its own bread for a cost of $148 per unit (100 loaves), including fixed costs of $37 per unit. A proposal is offered to purchase bread from an outside source for $97 per unit, plus $12 per unit for delivery. Prepare a differential analysis dated July 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed costs are unaffected by the decision. If an amount is zero, enter *o". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Bread (Alt. 1) or Buy Bread (Alt. 2) July 7 Make Bread Buy Bread (Alternative 1) (Alternative 2) Differential Effect on Income (Alternative 2) $0 50 SO Sales price Unit Costs: Purchase price Delivery Variable costs Fixed factory overhead Income (Loss) Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread

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