Hawley Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which 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. Hawley expects to retain the equipment. Hawley ca buy the cakes for $21. 11. 12. Should Hawley make the cakes or buy them? Why? If Hawley decides to buy the cakes, what are some qualitative factors that Hawley should also consider? 11. Should Hawley 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.) Make Outsource Difference (make-outsource) Cake costs cakes cakes x Data Table Variable costs Direct materials Direct labor Direct materials $ 525 Variable manufacturing overhead Direct labor 925 Purchase cost Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing cost 125 1,025 Total differential cost of cakes $ 2,600 100 Hawley continue to make the cakes. Outsourcing will Number of cakes 12. If Hawley deci to buy the cakes, hat are some qualitative factors that Hawley should also consider? $ 26 Cost per cake Print Done A. Qualitative factors include contribution margins of the various products produced. O B. Qualitative factors include separating fixed and variable costs. C. Qualitative factors include quality and on-time delivery. OD. Qualitative factors include considering sunk costs and manager's opinions