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V wedding cakes: Topaz Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will allow it to

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V wedding cakes: Topaz 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 FFF(Click the icon to view the costs.) Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Topaz expects to retain the equipment. Topaz can buy the cakes for $24. Should Topaz make the cakes or buy them? Why? If Topaz decides to buy the cakes, what are some qualitative factors that Topaz should also consider? 11. Should Topaz make the cakes or buy them? Why? (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the cakes in-house.) Difference Cake costs Make cakes Outsource cakes (make - outsource) Variable costs: Direct materials X Direct labor Data table Variable manufacturing overhead Purchase cost Direct materials LA 675 Total differential cost of cakes Direct labor 825 Variable manufacturing overhead 325 Fixed manufacturing overhead 1, 150 Total manufacturing cost 2,975 + 100 Number of cakes 30 Cost per cake Print Done

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