Winston 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: Please see pictures below Thank you

Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Winston expects to retain the equipment. Winston can buy the cakes for $23. Winston 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.) 11. Should Winston make the cakes or buy them? Why? 12. If Winston decides to buy the cakes, what are some qualitative factors that Winston should also consider? 11. Should Winston 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 Difference Outsource cakes Cake costs cakes (make-outsource) Variable costs: Direct materials Direct labor Variable manufacturing overhead Enter any number in the edit fields and then continue to the next question. Data Table - X Direct materials 625 775 Direct labor Variable manufacturing overhead 300 1,050 Fixed manufacturing overhead Total manufacturing cost 2,750 100 Number of cakes $ Cost per cake Print Done Winston y continue to make the cakes. Outsourcing will 12. If Winston decides to buy the cakes, what are some qualitative factors that Winston should also consider? O A. Qualitative factors include quality and on-time delivery O B . Qualitative factors include contribution margins of the various products produced. O C. Qualitative factors include separating fixed and variable costs. OD. Qualitative factors include considering sunk costs and manager's opinions