Katie's Cakes (KC) KC is a partnership, owned by Katie and her son James. KC makes birthday cakes. Each cake is made using job production. A customer will tell KC what filling they want and how to decorate the cake. There are three possible fillings for each cake. The proportion of annual revenue made from cakes with each filling is shown in Fig. 1. Fig. 1: Proportion of revenue generated from each cake filling – Annual revenue = $1m [Figure 1.0] Katie and James are considering stopping selling cakes with a jam filling. However they are concerned about reducing the product portfolio of the business. Katie is highly skilled and she does all of the cake production and decoration. James manages contact with customers and the business's finances. Demand has increased steadily in the past few months and KC now needs to recruit a new employee. James has created a job description to help the recruitment process (see Fig. 2). Fig. 2: Job description Job title: Assistant cake decorator The role requires someone who knows how to produce and decorate cakes. The employee should be young and have a driving licence. They should also be creative. The employee will be required to work from 8am to 6pm each day. Full training will be given. The rate of pay will be based on the level of experience of the employee.