Suppose a restaurant is considering whether to (1) bake bread in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs for each loaf include \(\$ 0.50\) of ingredients and \(\$ 1.00\) of direct labor for in-house baking. Allocating fixed overhead (depreciation on the kitchen equipment) based on direct labor assigns \(\$ 1.00\) of fixed overhead per loaf. The local bakery charges \(\$ 1.75\) per loaf. Which statement helps the restaurant decide whether to bake the bread in-house or buy from the local bakery?

a. There is a \(\$ 0.25\) per loaf advantage to buying the bread from the local bakery.

b. There is a \(\$ 1.25\) per loaf advantage to baking the bread in-house.

c. There is a \(\$ 0.25\) per loaf advantage to baking the bread in-house.

d. There is a \(\$ 0.75\) per loaf advantage to buying the bread from the local bakery.