Make or Buy
A restaurant bakes its own bread for a cost of $164 per unit (100 loaves), including fixed costs of $33 per unit. A proposal is offered to purchase bread from an outside source for $95 per unit, plus $8 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.
Differential Analysis | |||
Make Bread (Alt. 1) or Buy Bread (Alt. 2) | |||
July 7 | |||
Make Bread (Alternative 1) |
Buy Bread (Alternative 2) |
Differential Effect on Income (Alternative 2) |
|
Sales price | $0 | $0 | $0 |
Unit Costs: | |||
Purchase price | $ | $ | $ |
Delivery | |||
Variable costs | |||
Fixed factory overhead | |||
Income (Loss) | $ | $ | $ |
Determine whether the company should make (Alternative 1) or buy
(Alternative 2) the bread.
Buy the bread
Hi, Friend...
Hope you are also doing well.
I have tried to give the best possible answer. If you have any doubts, please do mention in the comment section. I'll definitely respond in early possible time.
Thanks, Dear... Have a Wonderful Day.
Make or Buy A restaurant bakes its own bread for a cost of $164 per unit...
Make or Buy A restaurant bakes its own bread for a cost of $164 per unit (100 loaves), including fixed costs of $30 per unit. A proposal is offered to purchase bread from an outside source for $101 per unit, plus $7 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...
Make or Buy A restaurant bakes its own bread for a cost of $164 per unit (100 loaves), including fixed costs of $32 per unit. A proposal is offered to purchase bread from an outside source for $105 per unit, plus $10 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...
Make or Buy A restaurant bakes its own bread for a cost of $140 per unit (100 loaves), including fixed costs of $32 per unit. A proposal is offered to purchase bread from an outside source for $99 per unit, plus $8 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...
a) b) c) d) Make or Buy A restaurant bakes its own bread for a cost of $140 per unit (300 loaves), including fixed costs of $33 per unit. A proposal is offered to purchase bread from an outside source for $97 per unit, plus $8 per unt for delivery Prepare a dilferential 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...
1. Lease or Sell Bullwinkle Company owns a equipment with a cost of $363,500 and accumulated depreciation of $53,600 that can be sold for $274,400, less a 5% sales commission. Alternatively, Bullwinkle Company can lease the equipment to another company for three years for a total of $284,800, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $15,200...
Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $164 per unit (100 bottles), including fixed costs of $32 per unit. A proposal is offered to purchase small bottles from an outside source for $100 per unit, plus $7 per unit for freight. 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...
Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $152 per unit (100 bottles), including fixed costs of $31 per unit. A proposal is offered to purchase small bottles from an outside source for $100 per unit, plus $9 per unit for freight. 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...
Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $75 per unit (100 bottles), including fixed costs of $28 per unit. A proposal is offered to purchase small bottles from an outside source for $40 per unit, plus $4 per unit for freight. 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...
Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $160 per unit (100 bottles), including fixed costs of $30 per unit. A proposal is offered to purchase small bottles from an outside source for $96 per unit, plus $10 per unit for freight. 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...
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...