Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Maurizio Inc. manufactures exotic Anchovy Pizza and Eggplant Pizzas. Each product requires careful attention in the wood burning pizza oven in the Baking Department. Total
Maurizio Inc. manufactures exotic Anchovy Pizza and Eggplant Pizzas. Each product requires careful attention in the wood burning pizza oven in the Baking Department. Total hours available for the Baking Department for both products is 140 hours. There are no other constraints in the production process. The following information is available for both products: Anchovy Eggplant Contribution margin per unit $18 $12 Time required to bake one unit (hours) 0.20 hours 0.10 hours Using the above information answer the following questions. What is the contribution margin per hour of Baking Department time for the Anchovy Pizza? A What is the contribution margin per hour of Baking Department time for the Eggplant Pizza? A Determine the optimal product mix. Given your calculations, how many units of Anchovy Pizza should the company produce? A/ Given your calculations, how many units of Eggplant Pizza should the company produce? What is the total contribution margin earned for the optimal product mix? A/
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