December 2016 sweet treat

SWEET TREATS BAKERY (DECEMBER 2016) Sweet Treats Bakery makes three types of cake: brownies, muffins and cupcakes. The costs, revenues and demand for each of the three cakes are as follows: Brownies Muffins Cupcakes Batch size (units) 40 30 20 Selling price ($ per unit) 1.50 1.40 2.00 Material cost ($ per unit) 0.25 0.15 0.25 Labour cost ($ per unit) 0.40 0.45 0.50 Overheads ($ per unit) 0.15 0.20 0.30 Minimum daily demand (units) 30 20 10 Maximum daily demand (units) 140 90 100 The minimum daily demand is required for a long?term contract with a local café and must be met. The cakes are made in batches using three sequential processes: weighing, mixing and baking. The products must be produced in their batch sizes but are sold as individual units. Each batch of cakes requires the following amount of time for each process: Brownies Muffins Cupcakes Weighing (minutes) 15 15 20 Mixing (minutes) 20 16 12 Baking (minutes) 120 110 120 The baking stage of the process is done in three ovens which can each be used for eight hours a day, a total of 1,440 available minutes. Ovens have a capacity of one batch per bake, regardless of product type. Sweet Treats Bakery uses throughput accounting and considers all costs, other than material, to be ‘factory costs’ which do not vary with production On Monday, in addition to the baking ovens, Sweet Treats Bakery has the following process resources available: Process Minutes available Weighing 240 Mixing 180 Which of the three processes, if any, is a bottleneck activity? A Weighing B Mixing C Baking D There is no bottleneck ... I don't understand how did they get for brownies 4 muffins 3 cupcakes 5.. Can u plz explain y did they use this n multiple by minutes