The popular Chiltern hotel operates a restaurant which makes its own food on the premises. The costs for the current production level of 500 meals are:

Cost/meal (Rs)
Materials/Inputs        25.00
Labour                      12.50
Variable overheads  17.50
Fixed overheads       35.00
Total costs                90.00

Ready-made meals could be bought in for Rs 77.50 per meal and, if so, the production capacity utilized at present would be unused.

Required:

Consider that there are no overriding technical considerations, should the restaurant order ready-made meals or makes its own food?