100% E Sun 6:18 PM Q, E i Chrome File Edit iew History Bookmarks People Window Help / M eTextbooks I Rent or Buy On x) Bookshelf Online: Managerial Secure! https://bookshelf.vitalsource.com/#/books/9780134067230/cfi/505V4/4@0.00:30. 1 able. The local bakery would charge Luca's Garden $1.72 per loat 1. What is the absorption cost of making a loaf of bread in-house? What is the variable 8. Relevant Costs for cost per loaf? Should Luca's Garden bake the bread in-house or buy from the local bakery? Why? In addition to the financial analysis, what else should Luca's Garden consider when making this decision? Go to 8. Relevant Costs for Short-Term Decisions 2. 3. How Do Managers Make S8-12 Relevant information for outsourcing delivery function (Learning Objectives 1 & 6) Myer Food in Bowling Green, Kentucky, manufactures and markets snack foods. Mila Giles manages the company's fleet of 220 delivery trucks. Giles has been charged with reengineering" the fleet-management function. She has an important decision to make . Should she continue to manage the fleet in-house with the five employees reporting How Do Managers Make Pricing and Special OrderDecisions? 448 How Do Managers Make Other Special Business Decisions? to her? To do so, she will have to acquire new fleet-management software to stream- line Myer Food's fleet-management process. Should she outsource the fleet-management function to Fleet Management Services, a company that specializes in managing fleets of trucks for other companies? Fleet Management Services would take over the maintenance, repair, and scheduling of Myer Food's fleet (but Myer Food would retain ownership). This alternative would require Giles to lay off her five employees. However, her own job would be secure, as she would be Myer Food's liaison with Fleet Management Services. Assume that Giles' records show the following data concerning Myer Food's fleet: . 477 End of Chapter Book value of Myer Food's trucks, with an estimated five-year life Annual leasing fee for new fleet-management software Annual maintenance of trucks Fleet Supervisor Giles' annual salary Total annual salaries of Myer Food's five other fleet-management employees 3,800,000 S 9,000 S 166,000 S 65,000 S 160,000 Suppose that Fleet Management Services offers to manage Myer Food's fleet for an annual fee of $280,000. Which alternative will maximize Myer Food's short-term operating income? S8-13 Scrap or process further decision (Learning Objective 7) Mast Truck Accessories has an inventory of 485 obsolete remote entry keys that are car- ried in inventory at a manufacturing cost of $75,175. Production Supervisor Carla Lewis must decide to do one of the foll