Question
Mella Melicious's Bakery produce three types of layered cakes, pineapple sweet sour, green tea and choclate peanut. This products consume the same types of special
Mella Melicious's Bakery produce three types of layered cakes, pineapple sweet sour, green tea and choclate peanut. This products consume the same types of special flour, flour type MM. The owner of bakery, Mila was told that for next three month, this flour will be in limited supply. The following information given: Pineapples sweet Green tea Choclate sour RM peanut RM RM Selling price Variable cost Overhead cost 85.00 75.00 80.00 13.00 20.00 10.00 - Indirect Material 10.00 12.00 16.00 - Indirect Labor 8.00 7.00 9.00 Consumption of Flour type MM 0.8 kg 1.5 kg 1.8 kg Additional information: There is an additional indirect material cost for Green Tea which cost RM5.00. Required: i) Calculate which layered cake should be ranked first, second and third in terms of contributing to profits. ii) Advise Mila which cake should be produce and sold. Why? (10 marks) (1 mark)
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