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Make or Buy A company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $164 per unit (100

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Make or Buy A company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $164 per unit (100 bottles), including fixed costs of 31 per unit. A proposal is offered to purchase small bottles from an outside source for $104 per unit, plus 59 per unit for freight a. Prepare a differential analysis dated July 31 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 To Use a minus sign to indicate a loss Differential Analysis Make Bottles (Alt 1) or Buy Bottles (Alt. 2) July 31 Make Bottles (Alternative 1) Buy Bottles (Alternative 2) Differential Effect on Income (Alternative 2) Sales price Unit costs Purchase price Freight Variable costs Fixed factory overhead Income (Loss) For the make and buy alternatives provide the unit costs. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 2 from alternative 1 Learning Objective b. Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles

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