QUESTION 1: REQUIRED: Burger Time, a hamburger restaurant chain, needs to determine whether it would be a) Burger Time expects demand for their burgers to grow to 60,000 in the next year. cheaper to continue to produce hamburger buns themselves or to purchase them from an outside supplier. They have had an offer from Just-Buns to purchase burger buns for Using the table below calculate the cost to make and the cost to buy (outsource) the production of 60,000 $1.20 each. If Burger Time buys the buns from Just-Buns then 20% of their existing fixed hamburger buns. overheads will be saved. 3 marks Last year Burger Time incurred the following costs to produce 50,000 buns. Costs Total costs Costs Make Buy Direct materials $ 25,000 Direct materials Direct production labour 15,000 Direct production labour Variable production overhead 10,000 Variable production overhead Fixed production overhead 30,000 Fixed production overhead Total production costs $ 80,000 Total Costs