Wages for the extra server are $9.75 an hour from 7 am to 11 pm 7 days a week

Special Decision Save Undo ? = Baked Goods Weekend Hours Baked Goods You now have the opportunity to sell baked goods at your cafe. About 30% of your customers are expected to purchase baked goods with their coffee, at an average price of $2.00 per item. You have a couple of options. Your first option is to buy fresh baked goods from a bakery in town at a unit cost of $1.00 each. Your second option is to purchase an oven for $4,000 and bake the goods in the cafe at a unit cost of $0.50 each. If you decide to bake the goods in-house, you will need an additional employee to run the oven. You may choose to adjust staff accordingly. Although running the baking operation in-house may be more expensive than purchasing from the bakery, the smell of baked goods is expected to attract more customers and add to the ambience of the cafe. Example calculations of costs for each option: Assumption Example 1 Example 2 Baked Goods Units Sold 500 1,500 Hourly Wage $10 $10 Calculation Example 1 Example 2 Oven ($4,000/60 months) $67 $67 Labor (wage x 10 hr. x 4 weeks) $400 $400 In-House Unit Cost ($0.50 x units) $250 $750 Total In-House Cost (oven + labor + unit cost) $717 $1,217 Total Bakery Cost ($1.00 x units) $500 $1,500 What will you do? Watch Video 1. Purchase the oven. (Cost: $4,000+ $0.50 per unit) 2. Buy from the bakeshop. (Cost: $1.00 per unit) O3. Do nothing. @