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Kelly Cake Company sells chocolate cakes, birthday decorated cakes, and specialty cakes. The factory is experiencing a bottleneck and is trying to determine which cake
Kelly Cake Company sells chocolate cakes, birthday decorated cakes, and specialty cakes. The factory is experiencing a bottleneck and is trying to determine which cake is more profitable. Even though the company may have to limit the orders that it takes Kelly Cakes is concerned about customer service and satisfaction. Birthday Cake Specialty Cake Chocolate Cake Sales price $45.00 $60.00 $20.00 Variable cost per cake $12.00 $20.00 $5.00 Hours needed to bake, frost, and decorate 2.5 hours 4 hours 1 hour (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. Show all calculations to get credit. Make sure you state clearly your answers and why. 1 A B I SE I U X2 x2 ob
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