Requirement $2.$ Should Italian Eatery bake the bread$$ in$-$house or buy from the local$$ bakery? Why?

$$Decision:

$$

Italian Eatery should bake the bread in$-$house

Italian Eatery should buy the bread from the local bakery

since the

$$

fixed cost

full cost

variable cost

of making each loaf is

$$

greater than

less than

the cost of outsourcing each loaf.