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Accounting

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A restaurant bakes its own bread for a cost of $165 per unit (100 loaves), including fixed costs of $43 per unit. A proposal is olfered to purchase bread from an outside sourc or $110 per-unit. plus $15 per unit for defivery. Pequired: 1. Prepare a differential analysis dated August 16 to defermine whether the company should make (Aliemative t) or buy (Alternative 2) the bread, assuming fixed costs are unatfected by the decision. Refor to the list of Amount Descriptions for the exact wording of the answer choices for fext entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter ' 0 '. A colon (A) will automatically appear it required. 2. Determine whether the company should make (Ahemative 1) or buy (Allemative 2) the bread. Amount Descriptions Amount Descriptions Delivery Fixed factory overhead Income (loss) Purchato proe Variatio costs Prepare a differential analysis dated August 16 to determine whether the company should make (Alternafive 1) or buy (Altemative 2) the bread, assuming fixed costs ane unaffected by the decision. Fefer to the list of Amount Descriptions for the exact wording of the answer chaices tor fext entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "o". A colon (i) will automatically apgear if required. Determine whether the company should make (Altemative 1) or buy (Alternative 2) the bread. Make the bread Buy the bread The restaurant is indifferent since the result is the same regardless of which alternative is chosen

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