Question
Alyssa's Custom Cakes currently sells 6 birthday, 1 wedding, and 3 specialty cakes each month for $50, $150, and $105 each, respectively. Alyssa's current multifactor
Alyssa's Custom Cakes currently sells 6 birthday, 1 wedding, and 3 specialty cakes each month for $50, $150, and $105 each, respectively. Alyssa's current multifactor productivity ratio is 1.25.
Part 2 a. Assuming each cake costs the same to make, the average cost to produce a cake is $ enter your response here per cake. (Enter your response rounded to two decimal places.)
Part 3 b. If the cost of labor is $45 per hour (including benefits) and it takes 90 minutes to produce a birthday cake, 240 minutes to produce a wedding cake, and 60 minutes to produce a specialty cake, what is Alyssa's labor productivity ratio in dollars per hour for each type of cake?
Alyssa's labor productivity ratio for birthday cakes is $ enter your response here per hour. (Enter your response rounded to two decimal places.)
Part 4 Alyssa's labor productivity ratio for wedding cakes is $ enter your response here per hour. (Enter your response rounded to two decimal places.)
Part 5 Alyssa's labor productivity ratio for specialty cakes is $ enter your response here per hour. (Enter your response rounded to two decimal places.)
Part 6 c. Based on the labor productivity ratio in dollars per hour, the cakes that Alyssa should be trying to sell more of are wedding specialty birthday cakes.
Part 7 d. Based on the given multifactor productivity ratio of 1.25 and the determined average cost to produce a cake, the type of cake that Alyssa should definitely stop selling is wedding birthday specialty cakes.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started