Grimm 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.) Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Grimm expects to retain the equipment. Grimm can buy the cakes for $20. 11. Should Grimm make the cakes or buy them? Why? 12. If Grimm decides to buy the cakes, what are some qualitative factors that Grimm should also consider? 11. Should Grimm 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.) Cake costs Variable costs: Difference Make cakes Outsource cakes (make outsource) Direct materials Direct labor Variable manufacturing overhead Purchase cost Total differential cost of cakes Grimm continue to make the cakes. Outsourcing will 12. If Grimm decides to buy the cakes, what are some qualitative factors that Grimm should also consider? OA. Qualitative factors include contribution margins of the various products produced. B. Qualitative factors include quality and on-time delivery. C. Qualitative factors include separating fixed and variable costs. D. Qualitative factors include considering sunk costs and manager's opinions. i Data Table - X Direct materials $ 675 Direct labor 750 Variable manufacturing overhead 150 1,100 Fixed manufacturing overhead Total manufacturing cost $ 2,675 - 100 Number of cakes $ 27 Cost per cake Print Done