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

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In response to a growing awareness of gluten allergies, Carla Vista 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 Oatmeal Chip Sugar Raisin Sales price $130 $118 $125 Variable cost $75 $69 $72 Fixed cost 16 15 21 Total cost 91 84 93 Gross profit $39 $34 $32 Pounds of flour 2.5 2.5 (a) 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 55 Sugar 49 Oatmeal Raisin $ 53 What type of cookie would maximize the company's contribution margin? Chocolate Chip e Textbook and Media Attempts: 2 of 3 used(b) Assume that, based on typical customer demand, Carla Vista will sell 11,600 batches of chocolate chip cookies, 7,600 batches of sugar cookies, and 9,600 batches of oatmeal raisin cookies. What will the company's contribution margin be? The company's contribution margin $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (c) Carla Vista's flour supplier has announced a shortage of gluten-free flour. As a result, Carla Vista will only be able to purchase 48,200 pounds of flour. How many batches of each type of cookie should the company bake? Batches Chocolate Chip Sugar Oatmeal Raisin What will the company's contribution margin be? The company's contribution margin $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (d) If Carla Vista uses gluten-free flour in other products, will the allocation you recommend in part (c) change? v eTextbook and Media

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