Suppose Roasted Pepper restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery The chet estimates that variable costs of making each loal include 50 52 of ingredients, 50 20 of variable overhead (electricity to run the oven) and 50 79 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Roasted Pepper assigns $0 95 of fixed overhead per loaf None of the fixed costs are avoidable. The local bakery would charge $1 78 per loaf Read the requirements Requirements 1. What is the unit cost of making the bread in-house? Complete the following outsourcing decision analysis to determine Roasted Pepper's unit cost of making the bread Roasted Pepper Outsourcing Decision Direct material Direct labor Variable overhead Variable cost per unit Plus: Fixed overhead per unit Cost per unit Requirement 2. Should Roasted Pepper bake the bread in-house or buy from the local bakery? Why? Since the of making each loat is the cost of outsourcing each Decision loat Requirements - X rant in house or (2) buy the bread from a local bakery The chef estimates ead (electricity to run the oven), and $0 79 of direct labor for kneading and uilding) based on direct labor, Roasted Pepper assigns 50,95 of fixed 78 per loaf 1. What is the full product unit cost of making the bread in-house? 2. Should Roasted Pepper bake the bread in-house or buy from the local bakery Why? 3. In addition to the financial analysis, what else should Roasted Pepper consider when making this decision? Print Done Requirement 2. Should Roasted Pepper bake the bread in-house or buy from the local bakery? Why? since the Decision loaf of making each loaf is the cost of outsourcing each Requirement 3. In addition to the financial analysis, what else should Roasted Pepper consider when making this decision? Roasted Pepper should consider the following qualitative factors before making a final decision O A. How does the quality and freshness of the local bakery bread compare to Roasted Popper brend? OB. Will the local bakery meet their delivery time requirements? OC. Both A and B D. None of the above