Lovejoy's Cake Shop Makes Three Types of Cakes: White, Chocolate

question 15

Essay

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:
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.

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Definitions:

Weathering

The natural process where rocks are broken down or dissolved into smaller pieces by chemical, physical, or biological factors.

Clay Minerals

A group of hydrated silicates of aluminum, sometimes with iron, magnesium, or other cations, which possess fine-grained structures and are a major component of soils.

Plant Cover

The layer of vegetation or plants that covers the ground in a specific area, crucial for maintaining ecosystems and influencing water and soil quality.

Erosion

Erosion is the process by which natural forces like water, wind, ice, and gravity wear away rocks and soil, transporting them from one place to another.