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Assume that Sweet Nature reports the following relevant costs to make or buy a 17.5 oz. bottles for its Juice Cocktails: (Click the icon to

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Assume that Sweet Nature reports the following relevant costs to make or buy a 17.5 oz. bottles for its Juice Cocktails: (Click the icon to view the costs.) Suppose Sweet Nature can use the released facilities in another manufacturing activity that makes a contribution to profits of $105,000 or can rent them out for $25,000. Requirement 1. Prepare a schedule that compares the four alternative courses of action. Which alternative would yield the lowest net cost? (Use parentheses or a minus when entering cost amounts. Leave unused cells blank.) Requirement 1. Prepare a schedule that compares the four alternative courses of action. Which alternative would yield the lowest net cost? (Use parentheses or a minus when entering cost amounts. Leave unused cells blank.) Buy and Buy and Use Buy and Leave Facilities for Rent Out Data table Make Facilities idle Other Activities Facilities Make Buy Total cost for Cost per Total cost for Cost per 950,000 Bottles Bottle 950,000 Bottles Bottle Purchase cost $ 237,500 $ 0.250 Net relevant costs Direct materials $ 77,900 $ 0.082 Direct labor 37,050 0.039 Variable factory overhead Avoidable annual fixed factory overhead 58,900 50,000 0.062 0.053 $ 223,850 $ 0.236 $ 0.250 Total relevant costs 237,500 $

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