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Business, 24.05.2021 15:30 gracerich

A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $156 per unit (100 bottles), including fixed costs of $36 per unit. A proposal is offered to purchase small bottles from an outside source for $103 per unit, plus $10 per unit for freight. Prepare a differential analysis to determine whether the company should make (Alternative 1) or buy (Alternative 2) for bottles, assuming fixed costs are not affected by the decision.

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