Final answer:
To achieve the same contribution margin per hour for the cake as the pie ($11 per hour), we calculate that the total contribution margin for the cake over 3 hours should be $33. Including the variable cost of $12, the required selling price of the cake to meet the desired contribution margin would be $45.
Step-by-step explanation:
The student has presented information from Muy Bueno Bakery regarding the contribution margins, production hours, variable costs, and the current selling prices of their three products: cake, pie, and cookies. To find the price needed for the cake to have the same contribution margin per hour as the pie, we first need to determine the per hour figures for the cake.
The cake's contribution margin is $18, and it takes 3 hours to produce one cake. Thus, the cake's current contribution margin per hour is $18 / 3 = $6 per hour. The pie has a contribution margin of $11 per hour. Since we want the cake to have the same contribution margin per hour as the pie, the cake's total contribution margin for 3 hours of production should be 3 * $11 = $33.
We then calculate the necessary selling price for the cake. The cake's total contribution margin should be $33, and its variable cost is $12. Therefore, the selling price of the cake needed to achieve the $33 contribution margin is $33 + $12 = $45.