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Current Attempt in Progress Ivanhoe Mountain Bakery makes doughnuts, cupcakes, and scones that are in high demand by local restaurants and hotels. Following is information
Current Attempt in Progress Ivanhoe 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 $1.80 $2.60 $2.29 Selling price per item Variable cost per item 1.30 2.00 0.99 Contribution margin per item $0.50 $0.60 $1.30 Machine hours per item 0.10 0.14 0.20 Ivanhoe Mountain has 2400 machine hours available each month. Demand for each item exceeds Ivanhoe Mountain's capacity to produce the item. In order to maximize the company's total contribution margin, in what sequence should Ivanhoe Mountain fill orders for the three products? Doughnuts first, then scones, then cupcakes O Scones first, then cupcakes, then doughnuts O Scones first, then doughnuts, then cupcakes O Cupcakes first, then doughnuts, then scones
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