Question: Make or buy A restaurant bakes its own bread for a cost of $230 per unit (100 loaves), including fixed costs of $47 per unit.

Make or buy A restaurant bakes its own bread for a cost of $230 per unit (100 loaves), including fixed costs of $47 per unit. A proposal is offered to purchase bread from an outside source for $180 per unit, plus $18 per unit for delivery. Prepare a differential analysis dated Jury 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed costs are unaffected by the decision.

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