Question 5 (7 marks) Harry's Pies currently makes the crust in-house for the various pies it sells at its stores. It uses 60,000 crusts annually in the production of its bestselling pies. The costs to make the crusts are: Materials $ 0.23 per crust Labour $ 0.35 per crust Variable Overhead $ 0.25 per crust Fixed Overhead $ 0.27 per crust HA2011 Final Assessment T2 2021 Paste A nearby bakery has offered to sell the crusts for $0.85 each to Harry's Pies. If the crusts are purchased, 30% of the fixed overhead could be avoided. a) Calculate the relevant costs for Harry's Pies if it continues to make its own pies. (2 marks) b) Calculate the relevant costs for Harrys Pies if it purchases from the nearby bakery. (2 marks) c) If Harry's Pies accepts the offer, calculate the effect on profit. (2 marks) d) Should Harry's Pies accept or reject the bakery's offer? (1 mark)