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Gbson Company makes decorativo wedding cakes. The company is considering buying the cakos rather than baking them, which will allow it to concentrate on decorating.

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Gbson Company makes decorativo wedding cakes. The company is considering buying the cakos 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: HIH (Click the icon to view the costs) Foced costs are primarily the deprociation on kitchen equipment such as ovens and mbers Gibson expects to retain the equipment Gibson can buy the eakes for $30 11. Should Gibson make the cakes or buy thern? Why? 12. If Gibson decides to buy the cakes, what are some qualitative factors that Gibson should also consider? ther than baking them, which ing cakes: pects to retain the equipment consider? Glsson Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes: (Click the icon to view the costs) Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers, Gibson expects to refain the equipment. Gi 11. Should Gibson make the cakes or buy them? Why? 12. If Gibson decides to buy the cakes, what are some qualitative factors that Gibson should also consider? Gibson continue to make the cakes. Outsourcing will 12. If Gibson decides to buy the cakes, what are some qualitative factors that Gibson should also consider? A. Qualitative factors include quality and on-time deivery B. Qualitative factors include considering sunk costs and manager's opinions C. Ouallative factors include contribution margins of the various products produced D. Cualiative factors include separating foxed and variable costs

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