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In response to a growing awareness of gluten allergies, Blossom Bakery tried using gluten-free flour in its three most popular cookies. After several attempts and

In response to a growing awareness of gluten allergies, Blossom 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 Sugar Oatmeal Raisin Sales price $137 $132 $137 Variable cost $76 $79 $80 Fixed cost 17 14 20 Total cost 93 93 100 Gross profit $44 $39 $37 Pounds of flour 2.5 2.5 2 (a) Correct answer icon Your answer is correct. 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, e.g. 52.75.) Cookies Contribution Margin Chocolate Chip $enter a dollar amount rounded to 2 decimal places 61.00 Sugar $enter a dollar amount rounded to 2 decimal places 53.00 Oatmeal Raisin $enter a dollar amount rounded to 2 decimal places 57.00 What type of cookie would maximize the companys. contribution margin? select a type of cookie Chocolate Chip eTextbook and Media Attempts: 1 of 3 used (b) Correct answer icon Your answer is correct. Assume that, based on typical customer demand, Blossom will sell 13,000 batches of chocolate chip cookies, 9,000 batches of sugar cookies, and 11,000 batches of oatmeal raisin cookies. What will the companys contribution margin be? The companys contribution margin $enter the companys contribution margin in dollars 1,897,000 eTextbook and Media Attempts: 1 of 3 used (c) Partially correct answer icon Your answer is partially correct. Blossoms flour supplier has announced a shortage of gluten-free flour. As a result, Blossom will only be able to purchase 54,500 pounds of flour. How many batches of each type of cookie should the company bake? Batches Chocolate Chip enter a number of batches 0 Sugar enter a number of batches 0 Oatmeal Raisin enter a number of batches 27,250 What will the companys contribution margin be? The companys contribution margin $enter the companys contribution margin in dollars eTextbook and Media Attempts: 2 of 3 used (d) If Blossom uses gluten-free flour in other products, will the allocation you recommend in part (c) change? select an option

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