Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for s
Posted: Sun Apr 17, 2022 7:09 pm
Make or Buy
A company manufactures various-sized plastic bottles for its
medicinal product. The manufacturing cost for small bottles is $148
per unit (100 bottles), including fixed costs of $36 per unit. A
proposal is offered to purchase small bottles from an outside
source for $97 per unit, plus $11 per unit for freight.
Question Content Area
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 "0". Use a minus sign to indicate a loss.
$fill in the blank
$fill in the blank
fill in the blank
fill in the blank
$fill in the blank
Question Content Area
(Make the bottles/Buy the bottles)
A company manufactures various-sized plastic bottles for its
medicinal product. The manufacturing cost for small bottles is $148
per unit (100 bottles), including fixed costs of $36 per unit. A
proposal is offered to purchase small bottles from an outside
source for $97 per unit, plus $11 per unit for freight.
Question Content Area
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 "0". Use a minus sign to indicate a loss.
$fill in the blank
$fill in the blank
fill in the blank
fill in the blank
$fill in the blank
Question Content Area
(Make the bottles/Buy the bottles)