Suppose seafood houseseafood house 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 $ 0.54$0.54 of ingredients, $ 0.24$0.24 of variable overhead (electricity to run the oven), and $ 0.74$0.74 of direct labor for kneading and forming the loaves. allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, seafood houseseafood house assigns $ 1.00$1.00 of fixed overhead per loaf. none of the fixed costs are avoidable. the local bakery would charge $ 1.80$1.80 per loaf.1. what is the absorption cost of making the bread in-house? what is the variable cost per loaf? 2. should olive yard bake the bread n-house or buy from the local bakery? why? 3. in addition to the financial analysis, what else should olive yard consider when making this decision?

What do economists mean when they use the latin expression ceteris paribus?

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?

When the federal reserve buys bonds from or sells bonds to member banks, it is called monetary policy reserve ratio interest rate adjustment open market operations