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Joe Mama s Bakery is looking to outsource its products after poor reviews about one of its products. It sells typical bakery items and is

Joe Mamas Bakery is looking to outsource its products after poor reviews about one of its products. It sells typical bakery items and is looking to outsource its cookie production. It currently costs Joe Mamas Bakery $2 in ingredients per dozen cookies and each baker can produce 5 dozen per hour. Bakers are paid $10 an hour. Electric Avenue Baking is offering to sell Joe Mamas Bakery a dozen cookies for $3.50. How much does Joe Mamas Bakerys incremental cost savings per dozen if it chooses to outsource? All overhead will remain the same, regardless of the decision made.
$1
$0
$2
$0.50
$3.50

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