Reference no: EM132939919
Maurizio Inc. manufactures exotic Anchovy Pizza and Eggplant Pizzas. Each product requires careful attention in the wood burning pizza oven in the Baking Department.
- Total hours available for the Baking Department for both products is 140 hours.
- There are no other constraints in the production process.
The following information is available for both products:
Anchovy Eggplant
Contribution margin per unit $18 $12
Time required to bake one unit (hours) 0.20 hours 0.10 hours
Problem 1: What is the contribution margin per hour of Baking Department time for the Anchovy Pizza?
Problem 2: What is the contribution margin per hour of Baking Department time for the Eggplant Pizza?
Problem 3: Determine the optimal product mix.
Problem 4: Given your calculations, how many units of Anchovy Pizza should the company produce?
Problem 5: Given your calculations, how many units of Eggplant Pizza should the company produce?
Problem 6: What is the total contribution margin earned for the optimal product mix?
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