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 chef estimates that variable costs of making each loaf include $0.52 of ingredients, $0.27 of variable
Requirements
- 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?
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