Wantage Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Wantage expects to retain them, which will allow it to concentrate on decorating. The company averages 100 wedding cakes per year and incurs the the equipment. Wantage can buy the cakes for $26. following costs from baking wedding cakes: E (Click the icon to view the costs.) Should Wantage make the cakes or buy them? Why? If Wantage decides to buy the cakes, what are some qualitative factors that Wantage should also consider? 11. 12. 11. Should Wantage 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.) Make Outsource Difference Cake costs cakes cakes (make-outsource) Variable costs: Data Table Direct materials Direct labor $ Variable manufacturing overhead Direct materials 575 Direct labor 800 Purchase cost 100 Total differential cost of cakes 1,300 Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing cost Wantage continue to make the cakes. Outsourcing will $ : 2,775 100 12. If Wantage decides to buy the cakes, what are some qualitative factors that Wantage should also consider? Number of cakes $ 28 Cost per cake O A. Qualitative factors include contribution margins of the various products produced. OB. Qualitative factors include separating fixed and variable costs. C. Qualitative factors include considering sunk costs and manager's opinions. OD. Qualitative factors include quality and on-time delivery. Print Done Enter any number in the edit fields and then continue to the next