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XYZ Company makes cookies to be included in a food gift basket. The cookies have a variable cost of $2.25 per package and fixed cost

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XYZ Company makes cookies to be included in a food gift basket. The cookies have a variable cost of $2.25 per package and fixed cost of $1.50 per package. Similar cookies could be purchased for $3.50 per package. One package is included in each food gift basket. Assuming the fixed cost is AVOIDABLE (will be incurred only when producing cookies), when computing Make or Buy analysis, how much is the cost to BUY the package of cookies? $1.50 $2.25 $3.50 $3.75

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