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  3. a restaurant bakes its own bread for a cost of $16

A restaurant bakes its own bread for a cost of $160 per unit (100 loaves),...

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Accounting

A restaurant bakes its own bread for a cost of $160 per unit (100 loaves), including fixed costs of $37 per unit. A proposal is offered to purchase bread from an outside source for $100 per unit, plus $9 per unit for delivery.

Prepare a differential analysis dated July 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed costs are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.

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