Make or buy A company manufactures various sized plastic bottles for its medicinal product The manufacturing cost for small

Question

Make or buy A company manufactures various sized plastic bottles for its medicinal product The manufacturing cost for small bottles is 55 per unit 100 bottles including fixed costs of 12 per unit A proposal is offered to purchase small bottles from an outside source for 36 per unit plus 3 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 0 Unit costs Differential Analysis Make Bottles Alt 1 or Buy Bottles Alt 2 January 25 Purchase price Freight Variable costs Fixed factory overhead Total unit costs Make Buy Differential Effects Bottles Bottles Alternative 1 Alternative 2 Alternative 2 X QOOQ

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