Given:

Contribution margin per unit for Bread A: $$2$

Contribution margin per unit for Bread B: $$3$

Limited oven capacity $($fully utilized$)$

Scenario: The bakery is considering replacing some of Bread As production with Bread B without altering the total production capacity.

Questions

a$.$ Identify the irrelevant costs for this decision.

b$.$ Provide a formula for computing the total contribution margin for Bread A and Bread B before any changes.

c$.$ If the bakery decides to produce $100$ more units of Bread B by reducing Bread As production, what will be the impact on the total contribution margin?

d$.$ What factors should the bakery consider in making this decision besides the contribution margin?