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Assume that Juicy reports the following costs to make 17.5 oz. bottles for its Juice Cocktails: E: (Click the icon to view the costs.) Another
Assume that Juicy reports the following costs to make 17.5 oz. bottles for its Juice Cocktails: E: (Click the icon to view the costs.) Another manufacturer offers to sell Juicy the bottles for $0.24. The capacity now used to make bottles will become idle if the company purchases the bottles. Further, one supervisor with a salary of $68,000, 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 bottlos? (Round the cost per botto to three decimal places.) Make Buy i Data Table Total Per Bottle Total Per Bottle Juicy Company Cost of Making 17.5-Ounce Bottles Total Cost for Cost per 900,000 Bottles Bottle Direct materials S Total relevant costs 0.085 76,500 S 52,200 Direct labor 0.058 Juicy should the bottles because it costs Variable factory overhead 67,500 69,300 0.075 0.077 Fixed factory overhead S 265,500 S 0.295 Total Print Done
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