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One of Maria's favorite things in the whole world is her grandma's banana bread. Maria has become so obsessed with this bread that she's using
One of Maria's favorite things in the whole world is her grandma's banana bread. Maria has become so obsessed with this bread that she's using her grandma's recipe and making it for her friends. She and her friends have tweaked the recipe so that they can make delicious banana chocolate chip muffins and banana squares, too. They've turned this into a side business, selling their items to local convenience stores. There's one problem: the baked goods are best when well-ripened bananas are used. They're often available at a reduced price. But when they're not, Maria has to buy green bananas at full price and wait for them ripen. Here are the typical costs and selling prices for each product. Maria would love to bake these items seven days a week, but availability of ripe bananas is a constraint. The following quantities of ripe bananas are required for each of the products Maria makes: banana bread requires 1.25 pounds, muffins require 1.00 pound, and squares require 0.75 pounds. How much is the contribution margin per pound? (Round answers to 2 decimal places, e.g. 15.25.) Which product maximizes her profitability, given the constrained resource? maximize(s) her profitability. The local convenience stores have told Maria that they can sell as many loaves of banana bread as she can supply, but they can only sell a combined 20 dozen muffins and squares. In a given production period, if Maria has 25 pounds of ripened bananas to work with, what quantities of each product should she make in order to maximize her profitability? (If no unit of an item is to be produced enter 0. Do not leave any field blank.) Calculate Maria's total contribution margin if she produces and sells at the quantities specified in part (b). (Round answer to 2 decimal places, e.g. 15.25.) Total contribution margin
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