PS.52 The Station, a boutique cookie company, needs to create aproduction process for its new cinnamon malt ball cookies. To helpaccomplish this, the company has put together some numbers forproduction costs (per dozen cookies for thevariable costs).
Process TypeFixed CostsLabor CostsMaterial CostsPre-Bake$154$1.75$0.65Easy Bake$306$1.53$0.48Speed Bake$531$1.35$0.48
The Station projects demand for the semester will be 200 dozencinnamon malt ball cookies. Due to the cookies’ expected popularitythe selling price will be $3.95.
A. Based on the projected demand (volume) for the semester,which process type should they select?
Pre-Bake
Easy Bake
Speed Bake
B. Under this process type—the one selected in the previousquestion—what would be their profits for the semester? (Displayyour
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