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Gino's Pizza has been making its own pizza sauce since it opened in 1 9 8 5 . Gino's advertises the freshness of its sauce

Gino's Pizza has been making its own pizza sauce since it opened in 1985. Gino's advertises the freshness of its sauce-it's made from scratch daily. But making sauce from scratch takes time, and Gino's has a hard time maintaining staffing levels. Because of these challenges, Gino's is considering outsourcing its sauce. More information regarding its options to make or buy is provided below.
\table[[,Make,Buy,],[DM for one batch,$25,,],[DL for one batch,20,,],[Variable MOH for one batch,5,,],[Fixed MOH for one batch,8,,],[Cost to buy,,$3.50 per gallon,],[Quantity per batch or quantity to purchase,12 gallons,12 gallons,]]
(a)
Your answer is partially correct.
Calculate the relevant cost per gallon to continue making each batch of sauce and compare it with the cost of outsourcing. None of the fixed-MOH will be avoided if Gino's buys instead of makes the sauce. (Round answers to 2 decimal places, e.g.15.25.)
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