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Hot Tamale is a excellent Mexican restaurant specializing in spicy food. They would like to offer homemade ice cream to cool down your taste buds
Hot Tamale is a excellent Mexican restaurant specializing in spicy food. They would like to offer homemade ice cream to cool down your taste buds after the spicy meal. Each gallon of Ice cream made in house will cost - .52 cents in materials, .20 cents in overhead, .37 cents in labor and .33 cents of fixed costs. None of the fixed costs are avoidable. Ice cream purchased from Cheapie-World would cost $2.10 per gallon. a) What is the product cost of the ice cream per gallon if it is made in-house? b) Should Hot Tamale buy it's ice cream or make it in-house
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