A restaurant bakes its own bread for $ 152 per unit (100 loaves), including fixed costs of $ 39 per unit. A proposal is offered to purchase bread from an outside source for $ 105 per unit, plus $ 12 per unit for delivery. Prepare a differential analysis dated August 16, 2014, to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming fixed costs are unaffected by the decision.
Answer to relevant QuestionsA company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $ 67 per unit (100 bottles), including fixed costs of $ 22 per unit. A proposal is offered to ...Product R is normally sold for $ 52 per unit. A special price of $ 39 is offered for the export market. The variable production cost is $ 31 per unit. An additional export tariff of 25% of revenue must be paid for all export ...A condensed income statement by product line for Celestial Beverage Inc. indicated the following for Star Cola for the past year: Sales .............. $ 290,000 Cost of goods sold ......... 155,000 Gross profit ...Rise N’ Shine Coffee Company produces Columbian coffee in batches of 6,000 pounds. The standard quantity of materials required in the process is 6,000 pounds, which cost $ 5.50 per pound. Columbian coffee can be sold ...Based on the data presented in Exercise assume that Smart Stream Inc. uses the total cost concept of applying the cost-plus approach to product pricing. In Exercise, Smart Stream Inc. uses the product cost concept of ...
Post your question