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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?

image text in transcribed
ing that this employee Should you "make" or should you buy THE RECIPE FOR ONE CAKE IS 12 ounces shortening pound, 12 ounces cake flour pounds sugar 1/4 ounce salt 1/2 ounce vanilla ounce baking soda 1 1/2 pints buttermilk 5 ounces cocoa THE AP PRICES FOR THESE INGREDIE Shortening: $0.32 per pound Cake flour: $11.09 per 50 pounds Sugar: $18.22 per 50 pounds Salt: $0.11 per pound Vanilla: $6.85 per pint Baking soda: $0.24 per pound Eggs: $1.29 per dozen Buttermilk: $2.45 per gallon Cocoa: $2.12 per pound

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