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Make or Buy A company manufactures various stred plastic bottles for its medicinal product. The manufacturing cost for small bottles is $164 per unit (100
Make or Buy A company manufactures various stred plastic bottles for its medicinal product. The manufacturing cost for small bottles is $164 per unit (100 bottles), including fixed costs of $35 per unit. A proposal is offered to purchase small bottles from an outside source for $97 per unit, plus $10 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 er, enter"O". Use a minus sign to indicate a loss Differential Analysis Make Bottles (Alt. 1) or Buy Bottles (Alt. 2) July 31 Male Bottles (Alemative) Buy Bottles (Alternative 2) Differential Fffect on Income (Atmative 2) Sales price Unit co purchase price Preght Variable costs Feed factory overhead Income (Loss) b. Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles
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