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 $45 per unit (1,000 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 $4 per unit for freight. Provide a differential analysis of the outside purchase proposal.

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Accounting

ISBN: 978-0324401844

22nd Edition

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

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