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Grimm Company makes wedding cakes. The company is considering buying the cakes ratherthan baking them, which will allow it to concentrate on decorating. The company
Grimm Company makes wedding cakes. The company is considering buying the cakes ratherthan 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 dprciation on kitchen equipment such as ovens and mixers. Grimm expects to retain the equipment. Grimm can buy the cakes for $25. Should Grimm make the cakes or buy them? Why? If Grimm dcids to buy the cakes, vvhat are some qualitative factors that Grimm should also consider? 11. Should Grimm make the cakes or buy them? Why? (For the Diffrence column. use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the cakes in-house
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