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Mama Bakery produces and sells cupcakes. On 1 September 2021, Mama Bakery received an order from Encik Ahmad for his son wedding next 2
Mama Bakery produces and sells cupcakes. On 1" September 2021, Mama Bakery received an order from Encik Ahmad for his son wedding next 2 months. There are three flavors of cupcakes ordered by Encik Ahmad which are Chocolate, Strawberry and Blueberry. The selling price and the variable cost for each cupcake as follows: Cupcakes Chocolate Strawberry Blueberry RM RM RM Selling Price/unit 3.00 3.50 4.00 Variable Cost/unit 1.20 1.50 1.80 During the month, Mama Bakery pays the rental cost of oven which is rent from Mami Bakery at RM 1,200 per month. In the process of baking, Chocolate cupcakes required 5 minutes, Strawberry cupcakes required 8 minutes and Blueberry cakes required 10 minutes. Other than that, Mama Bakery faced with the problem of oven or machine hour usage since the hours which available is only 160 hours or 9,600 minutes. This constraint is expected to restrict the production and sales of each product to: Cupcakes No of productions Chocolate Strawberry Blueberry Required: 400 500 500 a. Determine the number of each cupcakes to be produce by Mama Bakery. b. Determine the net profits or loss for the month. (11 marks) (6 marks) c. Special order is an extra order or an order for an item specially requested by a customer. It is difference as compared to the normal order. Discuss TWO (2) Qualitative and any TWO (2) Quantitative factors before accepting or rejecting the special order. (8 marks)
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