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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