## Answers

5 Birthday cakes x $50 per cake = $250

2 Wedding cakes x $150 per cake= $300

3 Specialty cakes x $100 per cake = $300

Total monthly revenue = $850

Multifactor productivity ratio = output/input1.25 = $850/x

Solve for x = $850/1.25 = $680

Total costs = $680

**Average cost per cake = $680/10 = $68/cake**

Labor productivity ratio for birthday cakes=Price of Birthday cakes/input hour=50/(90/60)=$33.33 per hour

Labor productivity ratio for wedding cakes=Price of wedding cakes/input hour=150/(240/60)=$37.50 per hour.

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