Question 2 (18 marks)
Sweet Treats makes cakes for special occasions. Each cake takes the cake decorator plenty of time to prepare and good cake decorators are in limited supply. The following information has been collected:
	Wedding cakes	Birthday cakes	Kids cakes
Selling price per unit	120	90	75
Variable cost per unit	50	60	50
Fixed cost per unit	30	20	35
Decorating time required per cake (in hours)	1.50	0.50	0.70
Weekly demand	10	60	30
Required:
1. The cake decorator is available 60 hours a week. Which product mix should they focus on to maximize profits? With this product mix, what will the total contribution maring amount to?
2. Another bake shop has offered to work on some cakes at a fixed rate of $50 per hour. Management is confident that this work is of acceptable quality. Should management accept the offer? Which product should they focus on? Why?