b. A. (4 points )Roasted Pepper restaurant (RP) is considering whether to bake bread for its restaurant in-house or to buy the bread from a local bakery The chef at RP estimates that the variable costs of making each loaf of bread consists of $ 52 of ingredients, $ 79 of direct labor for kneading the bread dough, and $ 27 of vanable overhead cost in the form of electricity for the oven The restaurant allocates fixed overhead based on labor hours at a rate that adds $.96 per loaf to the bread. None of the fixed overhead costs are avoidable. The local bakery would charge $1 78 per loaf to provide for all of RPs bread needs What is the full cost of each loaf of bread if RP bakes it in-house (using the RPs costing system)? What is the avoidable cost per loaf if the bread is out-sourced to the local bakery? Should RP bake the bread in-house or out-source it to the bakery? c. B.(6 points) The Baseball Hall of Fame in Cooperstown, NY has approached Collector-Cardz with a special order request. The Hall of Fame wishes to purchase 56,000 baseball card packs for a special promotional campaign, and has offered $.38 per pack to Collector-Cardz. Collector-Cardz total production cost per pack is as follows: Variable Costs Direct Materials $.11 Direct Labor .09 Variable Overhead .08 Fixed Overhead .30 Total Cost $.58 Collector-Cardz has sufficient capacity to handle this special order without impacting its regular sales. 1. Give a quantitative answer to whether Collector-Cardz should accept this special order. 2. If the Hall of Fame wants special hologram cards, Collector-Cardz will need to spend $11,200 to develop the hologram, which will be useless after the special order is complete. What is the minimum price per pack (nearest penny) that Collector-Cardz could accept, and still make a profit, for the special order if it is to consist of hologram cards? C. (10 points) Tilted Towers welcomes many of its guests by airdrop. Patrons use either custom glide suits or personal hang-gliders for their arrivals. Because patrons often leave suddenly and abandon their arrival gear, creating high turnover and a ready market, Tilted Towers has decided to manufacture and sell custom landing equipment to future customers. It plans to manufacture both personal hang-gliders (HGs) and glide suits (GSs). Each HG requires $300 of materials and 4 labor hours, while each GS requires $200 of materials and 5 labor hours. Tilted Towers has a total of $60,000 budgeted for materials for the current production cycle, and 1,000 labor hours available for the same production cycle. The HG has a unit contribution margin of $500 and the GS has a unit contribution margin of $600. If labor hours are the constrained resource, then which of its products should be the focus of Tilted Towers production and sales efforts? Demonstrate your calculations that allowed you to make this determination. Would the answer be the same if the materials are the constrained resource? Show the calculations that enabled you to make this determination. Edit View Insert Format Tools Table 12 pt Paragraph B I Y AV R V T R V | Q V B V B V D V | 0 # 8 B V EV = D B V VX