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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 130 120 130
Variable cost 75 77 84
Fixed cost 19 16 20
Total cost 94 93 104
Gross profit 36 27 26
Pounds of flour 2.5 2.5 2

Blossoms flour supplier has announced a shortage of gluten-free flour. As a result Blossom will only be able to purchase 49,550 pounds of flour.

How many batches of each type of cookie should the company bake?

What will the company's contribution margin be?

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