Freddie's Fudge Factory currently makes fudge for retail and mail order customers.It also offers a variety of roasted nuts.Fudge sales have increased over the past year,so Freddie is considering outsourcing the roasted nuts and using the roasting space to make additional fudge.A reliable supplier has quoted a price of $0.85 per pound for the roasted nuts.The following amounts reflect the in-house manufacturing costs per pound for the roasted nuts:
Required:
a. Should Freddie's Fudge Factory outsource the roasted nuts? Why or why not? Discuss all items that should be considered.
b. What incentives can Freddie offer the supplier of the roasted nuts to encourage continued reliability?
Definitions:
Excretory System
A biological system that removes excess, unnecessary materials from an organism, allowing it to maintain homeostasis and prevent damage to its body.
Uric Acid
Main nitrogenous waste of insects, reptiles, and birds.
Feces
Waste matter discharged from the bowels after food has been digested, essentially the body's solid waste.
Glomerular (Bowman's) Capsule
A cup-like sac at the beginning of the tubular component of a nephron in the kidney that performs the first step in the filtration of blood.
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