Question

CH25 Excel Make or buy Show Me How Office 365 A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $59 per unit (100 bottles), including fixed costs of $20 per unit. A proposal is offered to purchase small bottles from an outside source for $30 per unit, plus $3 per unit for freight. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Prepare a differential analysis dated January 25 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Enter unit costs as positive values. Use a minus sign to indicate negative Differential Effects. Differential Analysis Make Bottles (Alt. 1) or Buy Bottles (Alt. 2) January 25 Unit costs: Purchase price Freight Variable costs Fixed factory overhead Total unit costs Make Bottles (Alternative 1) Buy Bottles (Alternative 2) Differential Effects (Alternative 2) 0 -30 x -3 x 0 -3 39 x -39 x -20 x 0 -59 x -53 x 6 Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles. Make the bottles X

          CH25 Excel
Make or buy
Show Me How
Office 365
A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $59 per unit (100 bottles), including fixed costs of $20 per unit. A proposal is offered to purchase small bottles from an outside source for $30 per unit, plus $3
per unit for freight.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
Prepare a differential analysis dated January 25 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Enter unit costs as positive values. Use a minus
sign to indicate negative Differential Effects.
Differential Analysis
Make Bottles (Alt. 1) or Buy Bottles (Alt. 2)
January 25
Unit costs:
Purchase price
Freight
Variable costs
Fixed factory overhead
Total unit costs
Make Bottles
(Alternative 1)
Buy Bottles
(Alternative 2)
Differential Effects
(Alternative 2)
0
-30 x
-3 x
0
-3
39 x
-39 x
-20 x
0
-59 x
-53 x
6
Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles.
Make the bottles
X

CH25 Excel
Make or buy
Show Me How
Office 365
A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is 59 per unit (100 bottles), including fixed costs of20 per unit. A proposal is offered to purchase small bottles from an outside source for 30 per unit, plus3
per unit for freight.
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.
Open spreadsheet
Prepare a differential analysis dated January 25 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Enter unit costs as positive values. Use a minus
sign to indicate negative Differential Effects.
Differential Analysis
Make Bottles (Alt. 1) or Buy Bottles (Alt. 2)
January 25
Unit costs:
Purchase price
Freight
Variable costs
Fixed factory overhead
Total unit costs
Make Bottles
(Alternative 1)
Buy Bottles
(Alternative 2)
Differential Effects
(Alternative 2)
0
-30 x
-3 x
0
-3
39 x
-39 x
-20 x
0
-59 x
-53 x
6
Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles.
Make the bottles
X

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