This Question: t p Absa\'s Custom Cakes currently sels 5 brthday, 3 wedding, and

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This Question: t p Absa's Custom Cakes currently sels 5 brthday, 3 wedding, and 3 specialty cakes each mont for $50, 315, and 595 each, respecdively and $95 each, respectively. Alyssa's current rmultifactor productivity ratio is Alysa's curet muflacor producdivi 1.25 . Assuming each cake costs the same to make, the average cost to produce a cake is s per cake. (Enter your response rounded to two decimal places) b. If the cost of labor is $45 specialty cake, what is Alyssa's labor productivity ratio in dollars per hour for each type of cake? per hour (including benefits) and it takes 90 minutes to produce a birthday cake, 240 minutes to produce a wedding cake, and 60 minutes to produce a Alyssa's labor productivily ratio for birthday cakes is sper hour. (Enter your response rounded to two deoimal places) Alyssa's labor productivity ratio for wedding cakes is s per hour. (Enter your response rounded to two decimal places) Alyssa's labor productivity ratio for specialty cakes is per hour (Enter your response rounded to two decimal places) c. Based on the labor productivity ratio in dollars per hout, the cakes that Alyssa should be trying to sell more of are d. Based on the given mulitifactor productivity ratio of 1.25 and the determined average cost to produce a cake, the type of cake that Alyssa should cakes Jefinitely stop selling is cakes Enter your answer in each of the answer boxes

Explanation / Answer

A. Total revenue:

Birthday Cake = 5 * 50 = $250

Wedding Cake = 3 * 155 = $465

Specialty Cake = 3 * 95 = $285

Total = 1000

Multifactor productivity ratio = output / input

Input = 1000 / 1.25 = 800

Average = 800 / 11 = $72.72 per cake

B. Labour productivity

Birthday Cake = 50 / 1.5 = 3.33 per hour

Wedding Cake = 155 / 4 = 38.75 per hour

Speciality = 95 / 1 = 95 per hour

C. Alyssa should sell speciality cake as it has highest labour productivity.

D. Alyssa should stop selling birthday as it incur loss of Average - revenue = 72.72 - 50 = $ 22.72.

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