Lucis Garden restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The Chef estimates that variable costs of making each loaf includes $0.48 of ingredients, $0.24 of variable overhead (electricity to run the oven), and $0.70 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) assigns $1.22 of fixed overhead per loaf. 50% of the fixed costs are avoidable if Lucis Garden does not make the bread in-house. The local bakery would charge Luci Garden $1.86 per loaf. a) Should Lucis Garden bake the bread in-house or buy from the local bakery? Why? b) In addition to the financial analysis, what else must Lucis Garden consider in making the decision?