A restaurant bakes its own bread for a cost of $164 per unit (100 loaves), including fixed costs of $30 per unit. A proposal is offered to purchase bread from an outside source for $103 per unit, plus $10 per unit for delivery.

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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 "0". 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 (Alternative 1)	Buy Bread (Alternative 2)	Differential Effect on Income (Alternative 2)
Sales price	$0	$0	$0
Unit Costs:
Purchase price	$fill in the blank	$fill in the blank	$fill in the blank
Delivery	fill in the blank	fill in the blank	fill in the blank
Variable costs	fill in the blank	fill in the blank	fill in the blank
Fixed factory overhead	fill in the blank	fill in the blank	fill in the blank
Income (Loss)	$fill in the blank	$fill in the blank	$fill in the blank

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

Make the bread or Buy the bread?