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Make or Buy A restaurant hakes its own bread for a cost of $160 per unit (100 loaves), including fixed costs of $34 per unit.
Make or Buy A restaurant hakes its own bread for a cost of $160 per unit (100 loaves), including fixed costs of $34 per unit. A proposal is offered to purchase brend from an outside source for $10 per unit, plus 511 per unit for delivery Prepare a differential analysis dated July 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed costs are unaffected by the decision. If an amount is zero, enter *o*. For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Make Bread (Alt 1) or Buy Bread (Alt. 2) July 2 Differential Effect Make Bread Buy Bread on Income (Alternative 1) (Alternative 2) (Alternative 2) 50 50 $0 Unit Costs Purchase price Delivery Variable costs Faced factory overhead Income (Loss) Sales price Determine whether the company should make (Alternative 1) or buy Alternative 2) the bread. Buy the bread
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