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Suppose Country Cafe restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The

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Suppose Country Cafe 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 $0.48 of ingredients, 80.22 of variable overhead (electricity to run the oven), and $0.79 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Country Cafe assigns $1.05 of fixed overhead per loaf. None of the foxed costs are avoidable. The local bakery would charge $1.76 per loaf Read the requirements, 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 Outsourcing Decision Decision: since the of making each loaf is 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: Enter any number in the edit fields and then continue to the next question. Read the requirements. Country Care snould consider the following qualitative factors before making a final decision: O A. Will the local bakery meet their delivery time requirements? OB. How does the quality and freshness of the local bakery bread compare to Country Cafe bread? O C. Both A and B OD. None of the above AutoSave UP U 9 Documents A Styles Home Insert Draw Design Layout References Mailings Review View th 10 AA AA EEEE 21 paste & BIU ab X, X ADA 3 Over Requirements 1. What is the unit cost of making the bread in-house? Complete the following outsourcing decision analysis to determine Country CafeCountry Cafe's unit cost of making the bread. Country Caf Outsourcing Decision Direct material Direct labor Variable overhead Variable cost per unit Plus: Fixed overhead per unit Cost per unit Page 1 of 1 52 words English (United States) Focus

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