Alyssas custom cakes currently sells 5 birthday 2 wedding

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Reference no: EM13481682

Alyssa's Custom Cakes currently sells 5 birthday, 2 wedding, 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 birthday 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.
A. Use the multifactor productivity ratio provided to calculate the average cost of the cakes produced.

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

C. Based solely on labor productivity ratio, which cake sould Alyssa try to sell the most

D. Based on your answer in part A is there a type of cake Alyssa should stop selling?

Reference no: EM13481682

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