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Acompany manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $67 per unit (100 bottles). including fixed costs
Acompany manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $67 per unit (100 bottles). including fixed costs of $22 per unit. A proposal is offered to purchase smal bottles from an outside source for $35 per unit, plus $5 per unit for freight. Required: 1. Prepare a LaatM dated March 30 to determine whether the company should make (Atemative 1) or buy 2) the bottles, assuming fixed costs are unaffected by the decision. Refer to the list of Amount Descriptions the exact wording ofthe answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a is zero, enter "0 A colon wil 2. Determine whether the company should make (Alternative 1 or buy (Atemative 2) the bottles. Amount Des cri freight Fixed factory overhead Income (loss) Variable costs
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