Make or Buy A restaurant bakes its own bread for a cost of $164 per unit (100 loaves), including fixed costs of $36 per unit. A proposal is offered to purchase bread from an outside source for $101 per unit, plus $7 per unit for delivery. Prepare a differential analysis dated July 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. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Bread (Alt. 1) or Buy Bread (Alt. 2) July 7 Make Bread (Alternative 1) Buy Bread (Alternative 2) Differential Effect on Income (Alternative 2) Sales price $0 $0 $0 Unit Costs: Purchase price $fill in the blank 8210b8fd505bf94_1 $fill in the blank 8210b8fd505bf94_2 $fill in the blank 8210b8fd505bf94_3 Delivery fill in the blank 8210b8fd505bf94_4 fill in the blank 8210b8fd505bf94_5 fill in the blank 8210b8fd505bf94_6 Variable costs fill in the blank 8210b8fd505bf94_7 fill in the blank 8210b8fd505bf94_8 fill in the blank 8210b8fd505bf94_9 Fixed factory overhead fill in the blank 8210b8fd505bf94_10 fill in the blank 8210b8fd505bf94_11 fill in the blank 8210b8fd505bf94_12 Income (Loss) $fill in the blank 8210b8fd505bf94_13 $fill in the blank 8210b8fd505bf94_14 $fill in the blank 8210b8fd505bf94_15 Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread.
Make or Buy A restaurant bakes its own bread for a cost of $164 per unit (100 loaves), including fixed costs of $36 per unit. A proposal is offered to purchase bread from an outside source for $101 per unit, plus $7 per unit for delivery. Prepare a differential analysis dated July 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. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Bread (Alt. 1) or Buy Bread (Alt. 2) July 7 Make Bread (Alternative 1) Buy Bread (Alternative 2) Differential Effect on Income (Alternative 2) Sales price $0 $0 $0 Unit Costs: Purchase price $fill in the blank 8210b8fd505bf94_1 $fill in the blank 8210b8fd505bf94_2 $fill in the blank 8210b8fd505bf94_3 Delivery fill in the blank 8210b8fd505bf94_4 fill in the blank 8210b8fd505bf94_5 fill in the blank 8210b8fd505bf94_6 Variable costs fill in the blank 8210b8fd505bf94_7 fill in the blank 8210b8fd505bf94_8 fill in the blank 8210b8fd505bf94_9 Fixed factory overhead fill in the blank 8210b8fd505bf94_10 fill in the blank 8210b8fd505bf94_11 fill in the blank 8210b8fd505bf94_12 Income (Loss) $fill in the blank 8210b8fd505bf94_13 $fill in the blank 8210b8fd505bf94_14 $fill in the blank 8210b8fd505bf94_15 Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 3BE: Make or buy A company manufactures various-sized plastic bottles for its medicinal product. The...
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Make or Buy
A restaurant bakes its own bread for a cost of $164 per unit (100 loaves), including fixed costs of $36 per unit. A proposal is offered to purchase bread from an outside source for $101 per unit, plus $7 per unit for delivery.
Prepare a differential analysis dated July 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. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Differential Analysis | |||
Make Bread (Alt. 1) or Buy Bread (Alt. 2) | |||
July 7 | |||
Make Bread (Alternative 1) |
Buy Bread (Alternative 2) |
Differential Effect on Income (Alternative 2) |
|
Sales price | $0 | $0 | $0 |
Unit Costs: | |||
Purchase price | $fill in the blank 8210b8fd505bf94_1 | $fill in the blank 8210b8fd505bf94_2 | $fill in the blank 8210b8fd505bf94_3 |
Delivery | fill in the blank 8210b8fd505bf94_4 | fill in the blank 8210b8fd505bf94_5 | fill in the blank 8210b8fd505bf94_6 |
Variable costs | fill in the blank 8210b8fd505bf94_7 | fill in the blank 8210b8fd505bf94_8 | fill in the blank 8210b8fd505bf94_9 |
Fixed factory overhead | fill in the blank 8210b8fd505bf94_10 | fill in the blank 8210b8fd505bf94_11 | fill in the blank 8210b8fd505bf94_12 |
Income (Loss) | $fill in the blank 8210b8fd505bf94_13 | $fill in the blank 8210b8fd505bf94_14 | $fill in the blank 8210b8fd505bf94_15 |
Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread.
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