A company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles

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A company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $52 per unit (1,000 bottles), including fixed costs of $15 per unit. A proposal is offered to purchase small bottles from an outside source for $32 per unit, plus $7 per unit for freight. Provide a differential analysis of the outside purchase proposal.

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Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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