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First case: The Ayman Industrial Facility for Pipe Manufacturing is conducting a study on the possibility of purchasing half of its production quantity, and the facility is currently producing 80,000 units of the finished product. The following is a statement: Production costs: If you know that the facility is being exploited 80% of available production capacity, and do not expect employment Idle energy in the futureYesIn manufacturing the required part instead!than buy it. Also, the cost of manufacturing the part to be purchased amounts to half the quantity of the finished product that the facility currently producesAs follows: Required: Choose an alternative the most appropriate In light of differential analysis. The second case: The production capacity of the Al-Ittihad Factory is 40,000 units annually, but the factory produces half of this capacity, and sells the unit at a price of 2 riyals. It has been shown fromexaminingThe records indicate that the cost components of these units are: direct raw materials, 26,000 riyals,Direct wages: 7,000 riyals,Industrial expenses: 2000 riyals 60% Fixed ones,Selling and distribution expenses: 1,000 riyals 80% Of which fixed administrative expenses are 500 riyals. The factory management is studying one of the following two alternatives: The first: To accept a new offer from a customer to produce 10,000 new units that he purchases at a unit price of 1.75 riyals. Second: To allocate an amount of 5,000 riyals to advertise sales, in excess of what is currently spent. If this is done, it is expected that the number of units sold will increase until it absorbs the full production capacity, and it is expected that the unit selling price will continue to be 2 riyals. Required: Compare the two alternatives using the differential approach

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