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Question Help Suppose Italian Eatery restaurant is corsidering whether to (1) bake bread for its restaurant in-house or (2) buy the bread trom a local

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Question Help Suppose Italian Eatery restaurant is corsidering whether to (1) bake bread for its restaurant in-house or (2) buy the bread trom a local bakery The chef estimates that variable costs of making each loaf include $0.50 of ingrediants, $0.27 of variable overhead (olectriolity to nun the oven), and $0.71 of direct labor for kneading and forming the loaves. Alocating fxed overhead (depreciation on the kitchen equipment and building) based on direct labor, talian Eatery assigns $1.04 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.76 per loaf. Read the requirements Complete the following outsourcing decision analysis to determine Italian Eatery's unt cost of making the bread Italian Eatery Outsourcing Decision Drect material 5 71 Drect labor 27 Variable overhead Variable cost per unit 1.48 Pus: Fixed ovehead per unt Cost per unit Requirement 2. Should Italian Eatery bake the bread in-house or buy from the local bakery? Why? Ysince ther of making each loal is the cost of outsourcing each loal Decision Requirement 3. In addition to the inancial analysis, what else should Italian Eatery oonsider when making this decision? Ralian Eatery should consider the folowing qualitative factors before making a final decision Enter any number in the edit fields and then continue to the next

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