Suppose Steakhouse 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 $0.62 of ingredients, $0.20 of variable overhead (electricity to run the oven), and $0.74 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Steakhouse assigns $1.00 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.82 per loaf. Read the requirements. Requirements 1. What is the unit cost of making the bread in-house? - X Complete the following outsourcing decision analysis to determine Steakhouse's unit cost of making the bread. Requirements Steakhouse Outsourcing Decision Direct material Direct labor 1. What is the full product unit cost of making the bread in-house? 2. Should Steakhouse bake the bread in-house or buy from the local bakery? Why? 3. In addition to the financial analysis, what else should Steakhouse consider when making this decision? Variable overhead Variable cost per unit Plus: Fixed overhead per unit Print Done Cost per unit Requirement 2. Should Steakhouse bake the bread in-house or buy from the local bakery? Why? Decision: since the of making each loaf is the cost of outsourcing each loaf. Requirem khouse consider when making this decision? Steakhouse should bake the bread in-house Steakhous a final decision: Steakhouse should buy the bread from the local bakery A How does me quam ang uesuness One local vakery bread compare to Steakhouse bread? Requirement 2. Should Steakhouse bake the bread in-house or buy from the local bakery? Why? 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 Steakho aking this decision? fixed cost Steakhouse should consider the following qualitative factors before making a fi full cost variable cost O A. How does the quality and freshness of the local bakery bread compare OB. Will the local bakery meet their delivery time requirements? Requirement 2. Should Steakhouse bake the bread in-house or buy from the local bakery? Why? 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 Steakhouse consider when making this decisi greater than Steakhouse should consider the following qualitative factors before making a final decision: less than O A. How does the quality and freshness of the local bakery bread compare to Steakhouse bread? Requirement 3. In addition to the financial analysis, what else should Steakhouse consider when making this decision? Steakhouse should consider the following qualitative factors before making a final decision: O A. How does the quality and freshness of the local bakery bread compare to Steakhouse bread? B. Will the local bakery meet their delivery time requirements? O C. Both A and B D. None of the above