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Fancy cookies makes decorated cookies. Fancy cookies sells 200 cookies for $7 each. To make one cookie costs $1 in direct materials, $2 in direct
Fancy cookies makes decorated cookies. Fancy cookies sells 200 cookies for $7 each. To make one cookie costs $1 in direct materials, $2 in direct labour, $0.10 for plastic wrap packaging and fixed kitchen costs of $600. Another business has offered to sell Fancy cookies 200 of the exact same cookies for $5 each. If Fancy cookies buys the cookies then they won't need to pay $372 of the fixed costs. When making this make or buy decision, what is the relevant cost to make the cookies per cookie? Round your answer to two decimal places
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