vaiue 1000 polnts Mels Meals 2 Go purchases cookies that it includes in the 10.000 box lunches it prepares and sells annually. Mer's kitchen and adjoining meeting room operate at 70 percent of capacity. Mel's purchases the cookies for $1.12 each but is considering making them instead Mel's can bake each cookie for $.33 for materials, $.28 for dir ect labor, and $.71 for overhead without increasing its capacity The $.71 for overhead ncludes an allocation of $.43 per cookie for fixed overhead. However, total fixed overhead for the company would not increase if Mel's makes the cookies. Mel himself has come to you for advice. "it would cost me $1.32 to make the cookies, but only 51.12 to buy. Should I continue buying them?" Materials and labor are variable costs, but variable overhead would be only $.28 per cookie. Two cookies are put into every lunch Required: a. Prepare a schedule to show the differential costs per cookie. (Round your answers to 2 decimal places ) Cost to buy Direct material Direct labor Variable overhead Total costs b. Should Mal consinue to buy the cookies? G No References eBook & Resources Exercise Difticutty Easy RD: Study341