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Topaz Company makes decorative wedding cakes. The company is considering buying the cakes rather than baking them, which will allow it to concentrate on decorating. The company averages 100 wedding cakes per year and incurs the following costs from baking wedding cakes: (Click the icon to view the costs) Fixed costs are primarily the depreciation on kitchen equipment such as ovens and mixers. Topaz expects to retain the equipment. Topaz can buy the cakes for $20 11. Should Topaz make the cakes or buy them? Why? 12. If Topaz decides to buy the cakes, what are some qualitative factors that Topaz should also consider? Data table Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing cost Number of cakes Cost per cake $ $ $ 675 875 375 1,050 2,975 +100 30 - X 11. Should Topaz make the cakes or buy them? Why? (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the cakes in-house) Difference Cake costs Make cakes Outsource cakes (make-outsource) Variable costs Direct materials Direct labor Variable manufacturing overhead Purchase cost Total differential cost of cakes Topaz continue to make the cakes. Outsourcing will 12. If Topaz decides to buy the cakes, what are some qualitative factors that Topaz should also consider? OA. Qualitative factors include contribution margins of the various products produced. B. Qualitative factors include quality and on-time delivery. C. Qualitative factors include considering sunk costs and manager's opinions. D. Qualitative factors include separating fixed and variable costs