Question
Differential Analysis A restaurant bakes its own bread for a cost of $165 per unit (100 loaves), including fixed costs of $43 per unit. A
Differential Analysis
A restaurant bakes its own bread for a cost of $165 per unit (100 loaves), including fixed costs of $43 per unit. A proposal is offered to purchase bread from an outside source for $110 per unit, plus $15 per unit for delivery.
Differential Analysis Make Bread (Alternative 1) or Buy Bread (Alternative 2) August 16
Make Bread Buy Bread Differential Effect on Income 2
(Alternative 1) (Alternative 2) (Alternative 2)
Purchase price ___________ _____________ ____________
Delivery price ____________ ____________ ____________
Variable cost ____________ _______________ _______________
Fixed factory overhead ____________ _____________ _______________
Income (loss) ____________ _______________ ________________
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