A commercial bakery produces 150,000 cakes per month. Of these, 9,800 are partially customized in some...

  

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A commercial bakery produces 150,000 cakes per month. Of these, 9,800 are partially customized in some way, for example, with the words "Happy Birthday" written across the top, with room for a name or personalized message to be added later. At the moment, the fixed costs attributable to this detailed icing application total $37,200 per year, with a variable cost of $0.30 per cake. Should the bakery outsource this function to another supplier, at a fixed cost of $47,200 per year and a variable cost of $0.25 per cake? (a) Your answer is correct. What will it cost the bakery to outsource the detailed icing process? Total cost from outsourcing $ 76600 Question 5 of 10 < > Total cost from outsourcing eTextbook and Media (b) 6 $ eTextbook and Media At what demand level does it make sense economically to outsource the icing process? It is better to outsource when demand is 76600 or more. Att A commercial bakery produces 150,000 cakes per month. Of these, 9,800 are partially customized in some way, for example, with the words "Happy Birthday" written across the top, with room for a name or personalized message to be added later. At the moment, the fixed costs attributable to this detailed icing application total $37,200 per year, with a variable cost of $0.30 per cake. Should the bakery outsource this function to another supplier, at a fixed cost of $47,200 per year and a variable cost of $0.25 per cake? (a) Your answer is correct. What will it cost the bakery to outsource the detailed icing process? Total cost from outsourcing $ 76600 Question 5 of 10 < > Total cost from outsourcing eTextbook and Media (b) 6 $ eTextbook and Media At what demand level does it make sense economically to outsource the icing process? It is better to outsource when demand is 76600 or more. Att