BE 25-3 Make or Buy Obj. 1 A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $30 per unit (1,000 bottles), including fixed costs of $14 per unit. A proposal is offered to purchase small bottles from an outside source for $20 per unit, plus $1 per unit for freight. Prepare a differential analysis dated February 18 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision.