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4 Mantegna Ltd produces three types of frozen pizza: Quattro Stagioni, Capricciosa and Margherita. Details of each type are as follows: Price per unit Unit
4 Mantegna Ltd produces three types of frozen pizza: Quattro Stagioni, Capricciosa and Margherita. Details of each type are as follows: Price per unit Unit variable cost Labour hours required Quattro Stagioni Capricciosa Margherita 2.00 2.50 1.00 1.50 1.00 0.60 0.50 2.00 0.10 Mantegna Ltd has 15,000 labour hours available for production. Requirement a) Calculate the number of units of each type of pizza that Mantegna Ltd should produce. 10 Marks b) Assume that the demand for each type of pizza is limited to 10,000 units each. Determine the number of units of each type of pizza that Mantegna Ltd should produce and the labour hours allocated to each. 10 Marks c) Assume that the demand for each type of pizza is limited to 10,000 units each. Determine Mantegna Ltd's contribution margin per type of pizza and in total. d) Discuss the main assumptions behind Cost-Volume-Profit analysis. 6 Marks 4 Marks Total 20 Marke
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