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A purveyor has offered to sell you fudge cakes for $6 each. You try to determine whether you can make the cakes more cheaply. Assuming

A purveyor has offered to sell you fudge cakes for $6 each. You try to determine whether you can make the cakes more cheaply. Assuming that you will need to pay an additional employee $9.25 per hour, plus about $1.50 -per- hour fringe benefits, and further assuming that this employee can make 24 cakes per hour, what alternative should you select? Should you "make" or should you buy ? Why?

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