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Assume that Juicy reports the following costs to make 17.5 oz. bottles for its Juice Cocktails: (Click the icon to view the costs.) Another manufacturer

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Assume that Juicy reports the following costs to make 17.5 oz. bottles for its Juice Cocktails: (Click the icon to view the costs.) Another manufacturer offers to sell Juicy the bottles for $0.22. The capacity now used to make bottles will become idle if the company purchases the bottles. Further, one supervisor with a salary of $70,000, a fixed cost, would be eliminated if the bottles were purchased. Requirement 1. Prepare a schedule that compares the costs to make and buy the 17.5 oz. bottles. Should Juicy make or buy the bottles? (Round the cost per bottle to three decimal places.) Make Buy Total Per Bottle Total Per Bottle Purchase cost Direct materials Direct labor Variable factory overhead Avoidable annual fixed factory overhead Total relevant costs Juicy should the bottles because it costs Data Table Juicy Company Cost of Making 17.5-Ounce Bottles Total Cost for Cost per 950,000 Bottles Bottle Direct materials $ 57,000 $ 0.060 Direct labor 41,800 0.044 Variable factory overhead 68,400 0.072 78,850 0.083 Fixed factory overhead $ 246,050 $ 0.259 Total

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