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Lovejoy's Cake Shop makes three types of cakes: White, Chocolate, and Swirl on one assembly line ...

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Lovejoy's Cake Shop makes three types of cakes: White, Chocolate, and Swirl on one assembly line ...

Lovejoy's Cake Shop makes three types of cakes: White, Chocolate, and Swirl on one assembly line that has a limit of 400 labour-hours per week. Lovejoy can sell all the cakes it can make under current operating capacity. Manufacturing information per cake for each product is as follows:

   White   Chocolate   Swirl
Selling price   $16   $10   $20
Variable costs   10   5   18
Labour-hours per cake   .4   .2   .4

Required:
Determine the total weekly contribution margin when all labour-hours are allotted to the product with the highest:
a.   Unit selling price.
b.   Unit contribution margin.
c.   Contribution per labour-hour.

Textbook

Cost Accounting: A Managerial Emphasis, Canadian Edition

Edition: 7^th

Authors: Horngren, Datar, Rajan, Beaubien

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ruskin Author

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6 years ago

Just got PERFECT on my quiz

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You make an excellent tutor!

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Smart ... Thanks!

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