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 $056 of ingredients, 50 25 of variable overhead (electricity to run the oven) and 50.72 of direct labor for kneading and forming the loves Alcating fred overhead (depreciation on the Mitchen equipment and building based on direct labor Steakhouse is $0.99 of fled overhead per loal None of the feed costs are avoidable The local bakery would charge 51 78 per loaf Read the requirements Requirements 1. What is the unit cost of making the bread in house? Complete the following outsourcing de analysis to detecte d making the bread Steakhouse Outsourcing Decision Direct mai Direct labor Variable overhead Variable costserni Enter any number in the eat solds and then contnue to the new question 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 50.56 of ingredients, 50 25 of variable overhead (electricity to run the oven), and $0.72 of direct labor for kneading and forming the loaves Allocating fred overhead (depreciation on the kitchen equipment and building) based on direct labor Steakhouse assigns 30 99 of fixed overhead per laf None of the fixed costs are avoidable. The local bakery would charge $178 per loaf Variable cost per un Plus: Fbed overhead per unit Cost per unit the cost of outsourcing each loaf Requirement 2. Should Steakhouse bake the bread in house or buy from the local bakery? Why? Decision since the of making each loaf is 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 Suppose Steakhouse restaurant is considering whether to (1) bake bread for its restaurant in house (2) buy the bread from a local bakery The chef estimates that variable costs of making each loaf include $0.56 of ingredients, 50 25 of variable overhead (electricity to run the oven) and 50.72 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the Kitchen equipment and building based on direct labee Steakhouse s 50 99 of feed overhead perla. None of the fixed costs are avoidable. The local bakery would charge 5178 per loaf the cost of outsourcing each loaf Decision since ther o f making each loaf is Requirement 3. In addition to the financial analysis what he should Steakhouse consider when making this decision? Steakhouse should consider the following qualitative factors before making a final decision OA. How does the quality and freshness of the local bakery bread compare to Steakhouse bread? OB. Wil the local bakery meet the delivery time requirements OC. Both A and B OD. None of the above i Requirements 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? Print Done