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Im having a really hard time with this one. Show Me How eBook Make or Buy A company manufactures various-sized plastic bottles for its medicinal
Im having a really hard time with this one.
Show Me How eBook Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $148 per unit (100 bottles), incduding fixed costs of $33 per unit. A proposal is offered to purchase small bottles from an outside source for $96 per unit, plus $11 per unit for freight. ompany should make (alternative t or buy (Aternative 2) the bottles, assuming fiked costs are unafected by the dedislon. If an amount is zero, enter "0f. Use a minus sign to a. Prepare a differential analysis dated July 31 to determine whether the indicate a loss make (alter ferential Analysis Make Bottles (Alt. 1) or Buy Bottles (Alt. 2) Mke Botles (Altemative 1) Buy Botles (Altermative 2) Dfferential Effect on income (Aternative 2) 96X Sales price Unit costs: Purchase prce KFreight Variable costs Fixed factory overhead Income (Loss) J -- Check My Work For the make and buy alternatives provide the unit costs. Determine the diferential effect an income of the revenues, costs, and income (loss) by subtracting alternative 2 from altemative 1 Learning Objective 1. b. Determine whether the company should make (Alternative 1) or buy (Ailternative 2) the bottles. Feetara Compare the differential revenues and differential costs of making vs, buying bottles. which one has the greatest positive diffarential effect on income? Learning Objective 1 Next Previous Check My WorkStep by Step Solution
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