Mels Meals 2 Go purchases cookies that it includes in the 10,000 box lunches it prepares and sells annually. Mels kitchen and adjoining meeting room operate at 70 percent of capacity. Mels purchases the cookies for $0.88 each but is considering making them instead. Mels can bake each cookie for $0.27 for materials, $0.22 for direct labor, and $0.59 for overhead without increasing its capacity. The $0.59 for overhead includes an allocation of $0.37 per cookie for fixed overhead. However,