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wedding cakes: ( Click the icon to view the costs. ) Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers.
wedding cakes:
Click the icon to view the costs.
Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Hampshire expects to retain the equipment. Hampshire can buy the cakes for $
Should Hampshire make the cakes or buy them? Why?
If Hampshire decides to buy the cakes, what are some qualitative factors that Hampshire should also consider?
Should Hampshire 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 inhouse.
tableCake costs,Make cakesVariable costs:,Direct materials,Direct labor,Variable manufacturing overhead,Purchase costOtal differential cost of cakes,
Data table
tableDirect materials,$Direct labor,Variable manufacturing overhead,Fixed manufacturing overhead,Total manufacturing cost,$Number of cakes,Cost per cake,$
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