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1. Answer all boxes for thumbs up In response to a growing awareness of gluten allergies, Sheridan Bakery tried using gluten-free flour in its three
1. Answer all boxes for thumbs up
In response to a growing awareness of gluten allergies, Sheridan Bakery tried using gluten-free flour in its three most popular cookies. After several attempts and a lot of inedible cookies, the company perfected new recipes that yield delicious gluten-free cookies. The costs of producing a batch of 100 cookies are as follows: Chocolate Chip Oatmeal Raisin Sugar Sales price $132 $127 $132 Variable cost $82 $82 $84 Fixed cost 18 13 20 Total cost 100 95 104 Gross profit $32 $32 $28 Pounds of flour 2.5 2 2.5 (a) Assuming no raw material constraints and unlimited demand for cookies, calculate contribution margin per batch for Chocolate Chip, Sugar, Oatmeal Raisin cookies. (Round answers to 2 decimal places, eg. 52.75) Cookies Contribution Margin $ Chocolate Chip $ Sugar $ Oatmeal Raisin What type of cookie would maximize the company's contribution margin? Sugar Chocolate Chip Oatmeal Raisin edia Step by Step Solution
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