A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small...
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A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $140 per unit (100 bottles), including fixed costs of $31 per unit. A proposal is offered to purchase small bottles from an outside source for $95 per unit, plus $8 per unit for freight. a. Prepare a differential analysis dated February 18 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 ". b. Determine whether the company should make (Alternative 1 ) or buy (Alternative 2 ) the bottles
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