Chapter 25, Problem S25.6SE

To determine

Concept Introduction:

There are two outsource decisions to make before outsourcing a job:-

• If the incremental costs of production exceed the incremental costs to outsource, then outsource the job or the work.

• If the incremental costs of production are less than the incremental costs to outsource, then do not outsource.

1. 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? Give reasons

3. When making decision, what else should be considered by Roasted Pepper