Question: 3 PLEASE ANSWER QUICK NEED HELP WILL UPVOTE THANK YOU Suppose Roasied Pepper restaurant is considerng whether to (1) boke bread for is testaunnt in

3 PLEASE ANSWER QUICK NEED HELP WILL UPVOTE THANK YOU
3 PLEASE ANSWER QUICK NEED HELP WILL UPVOTE THANK YOU Suppose Roasied
Pepper restaurant is considerng whether to (1) boke bread for is testaunnt

Suppose Roasied Pepper restaurant is considerng whether to (1) boke bread for is testaunnt in house or (2) buy the bread trom a local bakery The chef estmases that variabie costs of making each loaf include $0.52 of ingredents, 50.27 of variable overtiead (electricity to run the oves), and $0.79 of direct laber for kneading and forming the lowves. Allocating fored overthead (depreciation on the kilchen equipment and bulding) based on diect labor, Roasied Pepper assigns 50.96 of fixed overhead per loat, None of the fxed costs are avaidabie. The local bakery would charge \$1.78 per loal. Ficad the Requirements 1. What is the urir cost of making the bread in-house? Complese the following outsourcing deoleion analysis to delermine flossiod Pepper's unit cost of making the bread. Requirement 2. Should Rossted Pepper bake the boead in-house or buy from the boal bskery? Why? Decision: of making each loat is the cost of evisourcing nich iosf, Requienment 3. In addecon to the financiai analysis, what ewe should Roosted Pepper cortider when mating this decision? Roasted Fepper should consider the following qualtative facton before making a final decivion: A. How does the qualify and frestress of Fre local bakery bresd compace to Reasted Pepper bread? B. We the local bakery meet their delivery time requernenta? C. Both Aand B Read the requirements. Requirements 1. What is the full product unit cest of making the bread in-house? 2. Should Roasted Pepper bake the bread in-house or buy from the local bakery? Why? 3. In addition to the financial analysis, what else should Roasted Popper consider when making this decision? Requirement 2. Should Roasted Pepper bake the bread in-house or Decision: Requirement 3, In addition to the financial analysk, what else should Roasted Pepper cocisider when making this decision? Roasted Pepper should consider the following qualtative factors before making a final decisionc A. How doos the quality and freshness of the local bakery bread compare to Roasted Pepper broad? B. Wal the local bakery meet their delivery time requirements? C. Both A and B D. None of the above

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