Jones must first consider which costs are avoidable by outsourcing baked goods production. For example, can some employees be laid off if products are no longer produced on-site? If so, how much cost savings will be generated? Jones should also consider the opportunity cost of the space currently taken up with bakery equipment. Could that space be put to a more productive use? For example, if she expanded her seating area, would she attract more customers to the shop? Factors other than potential cost savings must also be considered. For example, she would need to consider whether the supplier is dependable in terms of quality and delivery, and she should be concerned about the possibility that the supplier might raise the price soon after Jones signs the contract to a price greater than her original cost of production