Make versus Buy decision: Olde Charm Bakery makes sandwiches, pastries, cakes, and cookies. Currently it makes its own sourdough bread at a total unit cost of $1.72:
Direct materials $0.78
Direct labor 0.48
Variable OH 0.26
Fixed OH 0.20
Total unit cost $1.72
On average, Olde Charm Bakery needs 1,000 loaves of sourdough dough bread every month.
Kostco, a sourdough bread manufacturer, has approached Olde Charm Bakery with a proposal to provide all the bread that Olde Charm Bakery needs at a unit price of $1.50.
Should Olde Charm Bakery continue to make its own sourdough bread or should it buy it from Kostco? Assume 3/4 of the fixed OH is avoidable.

When interest is compounded continuously, the amount of money increases at a rate proportional to the amount s present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) find the amount of money accrued at the end of 3 years when $4000 is deposited in a savings account drawing 5 3 4 % annual interest compounded continuously. (round your answer to the nearest cent.) $ (b) in how many years will the initial sum deposited have doubled? (round your answer to the nearest year.) years (c) use a calculator to compare the amount obtained in part (a) with the amount s = 4000 1 + 1 4 (0.0575) 3(4) that is accrued when interest is compounded quarterly. (round your answer to the nearest cent.) s = $

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