Suppose Country Cato restaurant is considering whether to (1) bake beead for its restaurant inthouse of (2) buy the bread from a local bakny. The chet estimates that variabie costs of making each loaf include $0.60 of ingredients, $0.24 of variable overhead (electricity to nun the oven), and $0.75 of direct labor for kneading and forming the lowes. Allocating fixed overhead (deprociation on the kitchen equipment and buiding) based on drect labor, Country Cafe assigns $1.00 of fixed overhead per loat. None of the fued costs are avoidable. The local bakery would charge \$1.72. per loat, Read the requirements. Requirements 1. What is the unit cost of making the bread in-house? Compinta the following outsourcing decision analysis to delermine Country Cafe's unit cost of making the bread. Country Cafe Outsoureing Decision Direct material Direct labot Variable overhead Variable cost per unit Plus: Fixed overhead per unit Cost per unit Requirements 1. What is the full product unit cost of making the tread in-house? 2. Should Country Cato bake the bread in-house or buy from the local bekery? Why? 3. In addion to the financial analysa, what ele should Country Cafe consider when makng this decision? Get more help