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Tasty Tater Burger Co. (TIBC) is currently making all of its burger patties in-house by hand using premium ingredients. It make and sells 41,800 patties

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Tasty Tater Burger Co. (TIBC) is currently making all of its burger patties in-house by hand using premium ingredients. It make and sells 41,800 patties per year. The patty is used in most of the menu items at TTBC. The breakdown of the cost per patty is shown below. The fixed cost (at $0.60 /unit) would still remain with the company even if TTBC stops manufacturing the patty. An outside supplier has offered to sell a similar patty to TIBC for $4.80. The mixer currently used to mix the patty ingredients could be used for other recipes. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a negative change in operating income. a) Should TTBC make or buy the Datty? Cost to Make: Cost to Buy: Therefore TTBC should: b) What is the maximum price ITBC should be willing to pay an outside supplier for the patty? Maximum Price: c) If TIBC buys the patty for $4.80 instead of making it, by how much will income from operations increase or decrease? Change in operating income

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