Harcourt 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 Harcourt 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 Make cakes Outsource cakes Difference (make outsource) Data The Cake costs Variable costs Direct materials Direct labor Variable manufacturing overhead Purchase cost $ Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing cost Number of cakes 525 775 225 1.175 Total differential cost of cakes S Harcourt continue to make the cakes. Outsourcing will 2.700 100 27 S Cost per cake 12. If Harcourt decides to buy the cakes, what are some qualitative factors that Harcourt should also consider? O A Qualitative factors include considering sunk costs and manager's opinions OB. Qualitative factors include separating foved and variable costs OC. Qualitative factors include contribution margins of the various products produced OD. Qualitative factors include quality and on-time delivery Print Done