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.

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter7: Planning And Goal Setting

Section: Chapter Questions

Problem 2ED

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