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Marial Accounting Monday Wednesday Morning Name: Chapter 8C Answer Sheet Spring 2020 Desmond makes strawberry pies, and has been purchasing 30 000 cases of strawberries each year from Marnie for $30 per case Mornie has just informed Desmond that she is raising the price to $46 per case. Desmond has an empty field and is considering growing his own strawberries Desmond's controller uses the absorption method of determining costs for products and gave Desmond This cost estimate: Direct materials $20.00 Direct labor 15.00 Variable overhead 4.50 Fixed overhead 9 00 Prepare an analysis on the decision to buy strawberries from Marnie at the new price, or to grow strawberries. Include the following steps: 1 Identify two pieces of information given above that are irrelevant 2. Compute the total cost of growing the strawberries, and the cost to purchase from Mornie. 3. Determine the difference between the cost of growing and the cost of purchasing from Mornie. 4. Conclude whether Desmond should continue to buy strawberries or grow his own