Question: A restaurant bakes its own bread for $144 per unit (100 loaves), including fixed costs of $30 per unit. A proposal is offered to purchase

A restaurant bakes its own bread for $144 per unit (100 loaves), including fixed costs of $30 per unit. A proposal is offered to purchase bread from an outside source for $96 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. Follow Example Exercise 25-3. For the make and buy alternatives provide the unit costs. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 2 from alternative 1
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