CHAPTER 6 . RELEVANT INFORMATION FOR DECISION MAKING WITH A FOCUS ON O 6-33 Make or Buy at Nantucket Nectars Assume that Nantucket Nectars reports the following costs to make 17.5 oz. bottles for its juice cocktails: Nantucket Nectars Company Cost of Making 17.5-Ounce Bottles Total Cost for 1,000,000 Bottles Cost per Bottle Direct materials $ 80,000 $.080 Direct labor 30,000 030 Variable factory overhead 60,000 .060 Fixed factory overhead 85,000 .085 Total costs $255,000 $.255 Another manufacturer offers to sell Nantucket Nectars the bottles for $.25. The capacity now used to make bottles will become idle if the company purchases the bottles. Further, one supervisor with a salary of $60,000, a fixed cost, would be eliminated if the bottles were purchased. Prepare a schedule that compares the costs to make and buy the 17.5 oz. bottles. Should Nantucket Nectars make or buy the bottles