Business, 18.06.2020 05:57 2936131

Eastwood Cake Factory sells chocolate cakes, birthday cakes, and specialty cakes. The factory is experiencing a bottleneck and is trying to determine which cake is most profitable. Even though Eastwood may have to limit its orders, it is concerned about customer service and satisfaction. Chocolate Cake Birthday Cake Specialty Cake
Sales price $20.00 $45.00 $60.00
Variable cost per cake $5.00 $12.00 $20.00
Hours needed to bake, frost, and decorate 1 hour 2.5 hours 2 hours

Required:
a. Calculate the contribution margin per hour per cake.
b. Determine which cakes the company should try to sell more of first, second, and then last.

Answers: 1

Show answers

Answers

Answer from: lily3934

Chocolate Birthday Specialty

Cake Cake Cake

Contribution per hour $15 / hour $13.2 / hour $20 per hur

Chocolate Birthday Specialty

Cake Cake Cake

Contribution per hour Second Third First

Explanation:

Contribution margin is the net of sales price and variable cost of an product.

Contribution margin per hour is the rate of contribution margin earned by a product in an hour.

Chocolate Birthday Specialty

Cake Cake Cake

Sales price $20.00 $45.00 $60.00

Variable cost per cake $5.00 $12.00 $20.00

Contribution Margin $15.00 $33.00 $40.00

Hours to bake, frost & decorate 1 hour 2.5 hours 2 hours

Contribution per hour $15 / hour $13.2 / hour $20 per hur

(Contribution / Numbers of hours)

Company should try to sell the cask with highest contribution per hour rate.

In this given question Speciality cake have highest contribution per hour rate of $20. So, company should sell it more.

The should should try to sell cholcolate cake at second place and birthday cake in third place.

Answer from: Quest

they can see what that city is producing and to also see if they can some how get that product. like gold in africa.

Answer from: Quest

i just took the test and it is financing

Another question on Business

Business, 22.06.2019 05:00

Personal financial planning is the process of creating and achieving financial goals? true or false

Answers: 1

Answer

Business, 22.06.2019 07:10

1. the healthy pantry bought new shelving and financed $7,300 with 36 monthly payments of $267.65 each. suppose the firm pays the loan off with 13 payments left. use the rule of 78 to find the amount of unearned interest. 2. the healthy pantry bought new shelving and financed $7,300 with 36 monthly payments of $267.65 each. suppose the firm pays the loan off with 13 payments left. use the rule of 78 to find the amount necessary to pay off the loan. ! i entered 967.82 for question 1 and 5,455.78 for question 2 and it said it was

Answers: 3

Answer

Business, 22.06.2019 11:40

Manipulation manufacturing's (amm) standards anticipate that there will be 5 pounds of raw material used for every unit of finished goods produced. amm began the month of maymay with 8,000 pounds of raw material, purchased 25,500 pounds for $ 15,300 and ended the month with 7,400 pounds on hand. the company produced 4,9004,900 units of finished goods. the company estimates standard costs at $ 1.10 per pound. the materials price and efficiency variances for the month of maymay were:

Answers: 1

Answer

Business, 22.06.2019 18:10

Find the zeros of the polynomial 5 x square + 12 x + 7 by factorization method and verify the relation between zeros and coefficient of the polynomials

Answers: 1

Answer

You know the right answer?

Eastwood Cake Factory sells chocolate cakes, birthday cakes, and specialty cakes. The factory is exp...

Questions