Calculate the average cost of the cakes produced

Reference no: EM13725023

Alyssa's Custom Cakes currently sells 5 birthday, 2 wed-ding, and 3 specialty cakes each month for $ 50, $ 150, and $ 100 each, respectively. The cost of labor is $ 50 per hour including benefits. It takes 90 minutes to produce a birth-day cake, 240 minutes to produce a wedding cake, and 60 minutes to produce a specialty cake. Alyssa's current multifactor productivity ratio is 1.25.

Question 1: Use the multifactor productivity ratio provided to calculate the average cost of the cakes produced.

Quesstion 2: Calculate Alyssa's labor productivity ratio in dollars per hour for each type of cake.

Question 3: Based solely on the labor productivity ratio, which cake should Alyssa try to sell the most?

Question 7: Based on your answer in part (a), is there a type of cake Alyssa should stop selling?

Reference no: EM13725023

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Calculate the average cost of the cakes produced : Question 1: Use the multifactor productivity ratio provided to calculate the average cost of the cakes produced? Quesstion 2: Calculate Alyssa's labor productivity ratio in dollars per hour for each type of cake.

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