PLEASE SHOW ALL WORK

S25-6 (similar to) Question Help Suppose Pasta 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 include $0.54 of ingredients, $0.23 of variable overhead (electricity to run the oven), and $0.77 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Pasta assigns $0.95 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.74 per loaf. Read the requirements. Pasta Outsourcing Decision Direct material Direct labor Variable overhead Variable cost per unit Plus: Fixed overhead per unit Cost per unit Enter any number in the edit fields and then click Check Answer. ? 1. What is the full product unit cost of making the bread in-house? 2. Should Pasta bake the bread in-house or buy from the local bakery? Why? 3. In addition to the financial analysis, what else should Pasta consider when making this decision