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Fields of Green is a deciding whether to make or buy 50 gallons of vegetable broth daily, and have ascertained the following information: Purchase broth
Fields of Green is a deciding whether to make or buy 50 gallons of vegetable broth daily, and have ascertained the following information: Purchase broth for $5 per gallon. Or make broth for 4 hours overtime at a cost of $25 per hour overtime, plus $1 per gallon for broth ingredients. Assume that labor of making the broth is a fixed cost Should Fields of Green continue to make the broth or buy it? Based on your calculations, which of the following statements is correct? Question 11 options: Making broth is more expensive than buying broth Making broth is cheaper than buying broth Variable cost of buying broth is $250 Fixed cost of buying broth is $100 Fixed cost of buying broth is $0 Total cost of making broth is $150
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