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Spork Ltd makes two types of Pizza as follows: Classic Mega Selling price 16 20 Ingredients 8 7 Direct labour 5 7 Fixed costs
Spork Ltd makes two types of Pizza as follows: Classic Mega Selling price 16 20 Ingredients 8 7 Direct labour 5 7 Fixed costs 4 3 Profit (1) 3 Maximum Sales 600 units 500 units Portion of meat per pizza 1 3 1 5a) 5b) 5c) Describe what is meant by the term 'contribution'. (3 marks) Should Spork Ltd close the 'Classic' pizza line (Give financial reasons only)? (3 marks) If Spork Ltd has a maximum of 1,800 portions of meat available how many of each pizza should they make?. (7 marks) 5d) What is the maximum profit that Spork can make with only 1,800 portions of meat? (6 marks) 5e) If the shortage of meat portions continues, discuss two ways in which Spork Ltd could deal ***Page 4 of 5 with this? (6 marks)
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