Read the requirements ${?}^1.$

Requirements $1.$ What is the unit cost of making the bread in$-$house?

Complete the following outsourcing decision analysis to determine Country Cafe's unit cost of making the bread.

Country Cafe

Requirement $2.$ Should Country Cafe bake the bread in$-$house or buy from the local bakery? Why?

Decision: $(1.$ since the $(2).$ of making each loaf is $(3)-$ the cost of outsourcing each loaf.

Requirement $3.$ In addition to the financial analysis, what else should Country Cafe consider when making this decision?

Country Cafe should consider the following qualitative factors before making a final decision:

A$.$ Will the local bakery meet their delivery time requirements?

B$.$ How does the quality and freshness of the local bakery bread compare to Country Cafe bread?

C$.$ Both A and $B$

D$.$ None of the above

$1$: Requirements

What is the full product unit cost of making the bread in$-$house?

Should Country Cafe bake the bread in$-$house or buy from the local bakery? Why?

In addition to the financial analysis, what else should Country Cafe consider when making this decision?

$(1)$ Country Cafe should bake the bread in$-$house

$(2)$ fixed cost

$(3)$ greater than

Country Cafe should buy the bread from the local bakery

full cost

less than

variable cost