Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Telstar expects to retain the equipment. Telstar can buy the cakes for $29. Telstar Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will allow it to concentrate on decorating. The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes: (Click the icon to view the costs.) 11. Should Telstar make the cakes or buy them? Why? 12. If Telstar decides to buy the cakes, what are some qualitative factors that Telstar should also consider? 11. Should Telstar make the cakes or buy them? Why? (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the cakes in-house.) Make Outsource cakes Difference (make-outsource) cakes Cake costs Variable costs: Direct materials Direct labor Variable manufacturing overhead Purchase cost Total differential cost of cakes Telstar continue to make the cakes. Outsourcing will Enter any number in the edit fields and then continue to the next question. equipment such as ovens and mixers. Telstar expects retain the equipment. Telstar can buy the cakes for $2 Company makes decorative wedumy Lakes. To y is considering buying the cakes rather than hem, which will allow it to concentrate on ing. The company averages 100 wedding cakes - and incurs the fol cakes: i Data Table ck the icon to view akes or buy them? Wh cakes, what are som tar should also consid us sign or parenthese uld Telstar make th en the cost of outs Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing cost Number of cakes 650 925 150 1,175 hce source) Cake costs 2,900 100 e costs: ct materials ct labor able manufacturing Cost per cake se cost Print Done fferential cost of ca continue to make the cakes. Outsourcing will y number in the edit fields and then continue to the next question Direct labor Variable manufacturing overhead Purchase cost Total differential cost of cakes Telstar continue to make the cakes. Outsourcing will 12. If Telstar decides to buy the cakes, what are some qualitative factors that Telstar should also consider? O A. Qualitative factors include considering sunk costs and manager's opinions. O B. Qualitative factors include quality and on-time delivery. O C. Qualitative factors include contribution margins of the various products produced. OD. Qualitative factors include separating fixed and variable costs. Enter any number in the edit fields and then continue to the next question. 2 ? WP