Telstar Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will allow it to concentrate on decorating. The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes (Click the icon to view the costs.) Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Telstar expects to retain the equipment. Telstar can buy the cakes for $24 Should Telstar make the cakes or buy them? Why? 11. 12. If Telstar decides to buy the cakes, what are some qualitative factors that Telstar should also consider? 11. Should Telstar make the cakes or buy them? Why? (For the Difference column, use a minus sign of parentheses only when the cost of outsourcing exceeds the cost of making the cakes in-house) Cake costs Variable costs Difference Make cakes Outsource cakes (make-outsource) Direct materials Direct labor Variable manufacturing overhead Purchase cost Total differential cost of cakes Data table Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing cost Number of cakes Cost per cake $ 450 800 375 1,225 GA $ 2,850 +100 $ 29