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Don't answer if you don't know how to do this. also please follow the instructions on the picture Make or Buy A company manufactures various
Don't answer if you don't know how to do this.
also please follow the instructions on the picture
Make or Buy A company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $156 per unit (100 bottles), including fixed costs of $36 per unit. A proposal is offered to purchase small bottles from an outside source for $101 per unit, plus 59 per unit for freight a. Prepare a differential analysis dated January 25 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Differential Analysis Make Bottles (Alt. 1) or Buy Bottles (Alt. 2) January 25 Make Buy Differential Bottles Bottles Effect (Alternative 1) (Alternative 2) (Alternative 2) Unit costs: Purchase price 0 Freight -101 -101 0 19 .9 Variable costs - 120 120 -36 Fixed factory overhead -36 0 Total unit costs -156 b. Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles. Buy the bottlesStep by Step Solution
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