1. Differential analysis problem andessay/analysis. There are a three parts to thequestion.
Decision: Make a thermos of coffee every day, or buy thatMucho Grande Latte @ $3.75?
1. You work 5 days per week for 40 weeks per year, and you plan tostay at your job for 15 years.
2. a 1 pound can of Don Juan Columbo coffee costs $24 per can, andit can make 10 thermoses of coffee.
3. You use 1/2 cup (4 oz) of regular milk per thermos. A quart ofmilk (32 oz) costs $1.60.
4. A thermos costs $25 and you will probably have to replace youthermos once every 2 years.
5. It takes you 15 minutes to make a thermos of coffee (includingwaiting time, while you are getting dressed); it also takes you 15minutes to buy a Mucho Grande Latte from Moonbux (including parkingand waiting). You make $40 per hour.
a) ----What is the net incremental cost between makingcoffee and buying coffee over the whole period?
Important: Show your answer in this format, with ALL supportingwork shown below your final answer, as noted
$____________________in favor of _______________________.
b) --List the Quantitative factors which might bemissing from this problem, and indicate how they would influenceyour answer (in favor of Make or Buy)
1.___________________________________________________________________
2.___________________________________________________________________
3;___________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
c. --List the Qualitative factors which might influenceyour decision to Make or Buy
1.___________________________________________________________________
2.___________________________________________________________________
3;___________________________________________________________________
_____________________________________________________________________