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Hello, I am currently having issues in fully solving this managerial accounting problem. I am having trouble finding the total unit costs for sections buy
Hello,I am currently having issues in fully solving this managerial accounting problem. I am having trouble finding the total unit costs for sections "buy bottles" and "differential effect". I'e attached the problem below, as well as the answers I've input in (both correct and incorrect answers). Thank you for your help and time with solving this problem!
Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $160 per unit (100 bottles), including fixed costs of $37 per unit. A proposal is offered to purchase small bottles from an outside source for $96 per unit, plus $9 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 96 96 Freight 9 Variable costs 123 -123 37 37 0 Fixed factory overhead -21 Total unit costs 0 0 9 0 160 139 X $
I am currently having issues in fully solving this managerial accounting problem. I am having trouble finding the total unit costs for sections "buy bottles" and "differential effect". I'e attached the problem below, as well as the answers I've input in (both correct and incorrect answers). Thank you for your help and time with solving this problem!
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