Sky Mountain Bakery Makes Doughnuts, Cupcakes, and Scones That Are

question 112

Multiple Choice

Sky Mountain Bakery makes doughnuts, cupcakes, and scones that are in high demand by local restaurants and hotels.Following is information for each of these products: Sky Mountain has 2,000 machine hours available each month.Demand for each item exceeds Sky Mountain's capacity to produce the item.In order to maximize the company's total contribution margin, in what sequence should Sky Mountain fill orders for the three products?

• A)Scones first, then cupcakes, then doughnuts
• B)Doughnuts first, then scones, then cupcakes
• C)Cupcakes first, then doughnuts, then scones
• D)Scones first, then doughnuts, then cupcakes

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Definitions:

Liquidated Damages

Damages agreed to by the parties to a contract in the event of a breach.

Custom-Make

To create or manufacture something according to specific requirements or specifications.

Dollhouse

A miniature replica of a house, often used as a child's toy, which can be furnished and decorated to simulate a household.

Accord and Satisfaction

A legal agreement between parties to settle a dispute by agreeing on an acceptable form of compensation.