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 or buy the bottles, assuming fixed costs are unaffected by the decision.
b. Determine whether the company should make or buy the bottles.

Part a

Differential analysis to determine whether the company should make or buy  the bottles.

                                                                           Make         Buy

Variable manufacturing costs ($75 - $28)        $47

Purchase price                                                                     $40

Freight charges                                                                      $4

Total Cost                                                            $47           $44

Part b

The Company should Buy instead of making the bottles. This is because it costs $3 more to make the bottles than buying them.

Explanation:

The make or buy decision should be done by considering relevant costs. The fixed costs are irrelevant in this decision hence, we have to ignore them.

The alternative course which gives the lowest cost is the one to go for. This will minimize the costs for the entire business and in turn maximizes the profits of the company.

there is no possible way mgk stands a chance with the greatest white rapper of all time. eminem killshots had more bars than rap devil and the reason mgk is doing all this is cause he not getting attention anymore til the release of rap devil and the disses he is putting on eminem. now rap devil was more fire than killshot so mgk might won the battle with rap devil but eminem won the war with killshot.