Question
Cullumber Mountain Bakery makes doughnuts, cupcakes, and scones that are in high demand by local restaurants and hotels. Following is information for each of these
Cullumber Mountain Bakery makes doughnuts, cupcakes, and scones that are in high demand by local restaurants and hotels. Following is information for each of these products:
Doughnuts | Cupcakes | Scones | ||||
Selling price per item | $1.70 | $2.50 | $2.28 | |||
Variable cost per item | 1.20 | 1.90 | 1.00 | |||
Contribution margin per item | $0.50 | $0.60 | $1.28 | |||
Machine hours per item | 0.10 | 0.14 | 0.20 |
Cullumber Mountain has 2300 machine hours available each month. Demand for each item exceeds Cullumber Mountain's capacity to produce the item. In order to maximize the company's total contribution margin, in what sequence should Cullumber Mountain fill orders for the three products?
Cupcakes first, then doughnuts, then scones
Scones first, then cupcakes, then doughnuts
Doughnuts first, then scones, then cupcakes
Scones first, then doughnuts, then cupcakes
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