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Problem 3 - Make or buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $160 per

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Problem 3 - Make or buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $160 per unit ( 100 bottles), including fixed costs of $30 per unit. A proposal is offered to purchase small bottles from an outside source for $96 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 zero, enter "O". Use a minus sign to indicate a loss. B. Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles. Problem 4 - Replace equipment A machine with a book value of $250,700 has an estimated six-year life. A proposal is offered to sell the old machine for $215,300 and replace it with a new machine at a cost of $281,300. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $49,600 to $39,700. A. Prepare a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate subtracted or negative numbers or a loss. B. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)

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