Question
Chocolate Chip Sugar Oatmeal Raisin Sales price $131.80 $111.60 $129.45 Variable cost $82 $63 $87 Fixed cost 19 16 21 Total cost 101.00 79.00 108.00
Chocolate Chip | Sugar | Oatmeal Raisin | |
Sales price | $131.80 | $111.60 | $129.45 |
Variable cost | $82 | $63 | $87 |
Fixed cost | 19 | 16 | 21 |
Total cost | 101.00 | 79.00 | 108.00 |
Gross profit | $30.80 | $32.60 | $21.45 |
Pounds of flour | 2 | 2 | 1.5 |
In response to a growing awareness of gluten allergies, Singletary Cookie Company 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:
Singletarys flour supplier has announced a shortage of gluten-free flour. As a result, Singletary will only be able to purchase 51,650 pounds of flour.
1) How many batches of each type of cookie should the company bake?
2) What will the companys contribution margin be?
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