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Make or Buy A restaurant bakes its own bread for a cost of $168 per unit (100 loaves), including fixed costs of $37 per unit.
Make or Buy A restaurant bakes its own bread for a cost of $168 per unit (100 loaves), including fixed costs of $37 per unit. A proposal is offered to purchase bread from an outside source for $97 per unit, plus $11 per unit for delivery Prepare a differential analysis dated August 16, to determine whether the company should make (Alternative 1) or buy (Altemative 2) the bread, assuming foxed costs are unaffected by the decision. IF an amount is zero, enter zero "o" Differential Analysis Make Bread (Alt 1)or Buy Bread (Alt. 2) Make Bread (Alternative 1) Buy Bread (Alternative 2) Differential Effect on Income (Alternative 2) s0 Selling Price Unit Costs $0 $0 Purchase price Delivery Variable costs Foxed factory overhead Income (Loss)
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