Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $168 per unit (100 bottles), including fixed costs of $30 per unit. A proposal is offered to purchase small bottles from an outside source for $102 per unit, plus $12 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 "o" 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 Freight Variable costs Fixed factory overhead Total unit costs b. Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles. Discontinue a Segment Product Tango has revenue of $194,400, variable cost of goods sold of $116,200, variable selling expenses of $32,800, and fixed costs of $61,700, creating an operating loss of $(16,300) a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "O'. If required, use a minus sign to indicate a loss. Differential Analysis Continue Product Tango (Alt. 1) or Discontinue Prodlat Tango (Alt. 2) February 13 Continue Discontinue Differential Product Product Effects Tango Tango (Alternative 2) (Alternative 1) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin, expenses und Fixed costs Profit (Loss) b. Determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2). Previous Next > Lease or Sell Kincaid Company owns equipment with a cost of $363,900 and accumulated depreciation of $55,000 that can be sold for $276,100, less a 5% sales commission. Alternatively, Kincaid Company can lease the equipment for three years for a total of $286,100, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Kincaid Company on the equipment would total $16,500 over the three year lease. a. Prepare a differential analysis on August 7 as to whether Kincaid Company should lease (Alternative 1) or sell (Alternative 2) the equipment. If required, use a minus sign to indicate a loss. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) August 7 Lease Sell Differential Equipment Equipment Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs Profit (Loss) b. Should Kincaid Company lease (Alternative 1) or sell (Alternative 2) the equipment