Make or Buy A campany manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost...
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Make or Buy A campany manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $30 per unit (1,000 bottles), including fund costs of $14 per unit. A proposal is offered to purchase mel bottles from an outside source for $20 per unit, plus $1 per unit for freight a. Prepare a differential analysis dated February 18 to determine whether the company should make (Alternative 1) or buy (Alternative 23 the betties, assuming fixed casts are unaffected by the decision. If an amount is enter "0" Differential Analysis Make (Alt. 1) or Buy (Alt. 2) Bottles Line Item Description Unit costs Purchase price Freight February 18 Make Bottles Buy Bottles Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Variable costs Fixed factory overhead Total unit costs b. Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles Buy the bottles Make or Buy A campany manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $30 per unit (1,000 bottles), including fund costs of $14 per unit. A proposal is offered to purchase mel bottles from an outside source for $20 per unit, plus $1 per unit for freight a. Prepare a differential analysis dated February 18 to determine whether the company should make (Alternative 1) or buy (Alternative 23 the betties, assuming fixed casts are unaffected by the decision. If an amount is enter "0" Differential Analysis Make (Alt. 1) or Buy (Alt. 2) Bottles Line Item Description Unit costs Purchase price Freight February 18 Make Bottles Buy Bottles Differential Effects (Alternative 1) (Alternative 2) (Alternative 2) Variable costs Fixed factory overhead Total unit costs b. Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles Buy the bottles
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