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Noonie's Homemade Fudge began operation in August of 2020, during the pandemic. They make a variety of flavors of fudge such as walnut fudge, triple
Noonie's Homemade Fudge began operation in August of 2020, during the pandemic. They make a variety | ||||||
of flavors of fudge such as walnut fudge, triple chocolate, and pineapple coconut. Let's suppose that | ||||||
the ingredients for a 5 pound batch of Cherry Pecan Swirl fudge cost $6.52 (milk, sugar, butter, nuts, flavorings). | ||||||
The total cost for rent, utilities, equipment depreciation, and labor at the shop is $11,120 per month. | ||||||
The fudge making takes place 8 hrs/day for 24 days per month. |
They sell the fudge in 1 pound trays for $15 each. | |||||
Labor to make and sell one batch of fudge is 20 minutes. | |||||
Ignore any other costs. | |||||
What is the labor productivity to make fudge | |||||
a. | in batches per hour? | ||||
b. | in pounds per hour? | ||||
What is the revenue generated by the amount of fudge that can be made I an hour? | |||||
Using revenue per one hour of fudge making and costs per one hour of fudge making, compute | |||||
productivity in $ per $. (include all costs.) | |||||
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