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Demand for the birthday cakes varies from 12 to 15 batches per day. Each batch decorated and sold earns a contribution of $40 but each batch unsold leads to loss of contribution of $15.

The payoff table below shows the total $ contribution from each of the possibilities:

Based on expected values, the number of batches of birthday cakes the bakery manager should decorate each day is:

Options:

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Question 2

A master budget comprises which of the following?

Options:

The budgeted income statement and the budgeted cash flow statement only.

The budgeted income statement and the budgeted statement of financial position only.

The budgeted income statement and budgeted capital expenditure only.

The budgeted income statement, the budgeted statement of financial position and the budgeted cash flow statement only.

Question 3

Two products being produced by a company require the same material which is limited to 2,600 kgs.

What is the optimal production plan?

Options:

500 units of S & 100 units of T

50 units of S & 400 units of T

400 units of S & 167 units of T

500 units of S & 400 units of T

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