Vera operates a specialty cake shop and she can make and sell 15 specialty cakes per day. The sales price of each specialty cake is $65. Vera works 6 hours per day and she pays herself $20/hr. The material cost for each specialty cakes is $15 and the overhead cost per day is $25.( a ) Calculate the daily multifactor productivity.( b ) Compute the percentage change on the multifactor productivity under each of the following situation:1. A $1 increase in material cost for each specialty cake.2. A 10% decrease in material cost for each specialty cake. 3. A 10% decrease in daily overhead cost.
Vera operates a specialty cake shop and she can make and sell 15 specialty cakes per day. The sales price of each specialty cake is $65. Vera works 6 hours per day and she pays herself $20/hr. The material cost for each specialty cakes is $15 and the overhead cost per day is $25.( a ) Calculate the daily multifactor productivity.( b ) Compute the percentage change on the multifactor productivity under each of the following situation:1. A $1 increase in material cost for each specialty cake.2. A 10% decrease in material cost for each specialty cake. 3. A 10% decrease in daily overhead cost.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Vera operates a specialty cake shop and she can make and sell 15 specialty cakes per day. The sales price of each specialty cake is $65. Vera works 6 hours per day and she pays herself $20/hr. The material cost for each specialty cakes is $15 and the overhead cost per day is $25.
( a ) Calculate the daily multifactor productivity.
( b ) Compute the percentage change on the multifactor productivity under each of the following situation:
1. A $1 increase in material cost for each specialty cake.
2. A 10% decrease in material cost for each specialty cake.
3. A 10% decrease in daily overhead cost.
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