Make or buy analysis
A supplier has offered to sell you fudge cakes for € 6 each. You
try to determine whether you can make the cakes more cheaply.
Assuming that you will need to pay an additional employee €9.25 per
hour, and further assuming that this employee can make 24 cakes per
hour, what alternative would you select?
Should you “make” or should you “buy”? Why?
RECIPE FOR ONE CAKE IS
500 g
Cake flour
1 kg
Sugar
60 g
Salt
90 ml
Vanilla essence
12
Eggs
125 g
Baking soda
1 l
Full cream milk
600 g
Cocoa powder
AP PRICES FOR THESE INGREDIENTS ARE
Cake flour
€ 11.09 per 25kgs
Sugar
€ 18.22 per 25 kgs
Salt
€ 0.11 per 500g
Vanilla essence
€ 6.85 per 500ml
Baking soda
€ 0.24 per 500g
Full cream milk
€ 0.50 per liter
Eggs
€ 1.29 per dozen
Cocoa powder
€ 2.02 per 500g
Make or buy analysis A supplier has offered to sell you fudge cakes for € 6 each. You try to determine whether you can m
-
answerhappygod
- Site Admin
- Posts: 899604
- Joined: Mon Aug 02, 2021 8:13 am
Make or buy analysis A supplier has offered to sell you fudge cakes for € 6 each. You try to determine whether you can m
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!