Bobs’s Bakery sells chocolate cakes, what is the contribution margin per hour fo
ID: 2537367 • Letter: B
Question
Bobs’s Bakery sells chocolate cakes, what is the contribution margin per hour for his birthday cakes?
Birthday
Cake
Sales price
$60.00
Variable cost per cake
$12.00
Hours needed to bake, frost, and decorate
3
(Each answer should have possibilities for answers entered with or without dollar signs and commas. Thus the correct answer for a problem could be $100,000 100,000 100000 $10000)
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Birthday
Cake
Sales price
$60.00
Variable cost per cake
$12.00
Hours needed to bake, frost, and decorate
3
Explanation / Answer
Contribution margin per cake = (Selling price per cake - variable cost per cake)
= (60 -12) = 48
Contribution margin per hour = 48 /3 = 16 per hour