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Plastic bottles for medicinal product

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Reference no: EM132105016

A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $75 per unit (100 bottles), including fixed costs of $28 per unit. A proposal is offered to purchase small bottles from an outside source for $40 per unit, plus $4 per unit for freight. How do I use differential analysis to figure out if they should make or buy the bottles?

Reference no: EM132105016

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