Question
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
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 Chip | Sugar | Oatmeal 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 | 2 | |||||||||
Carla Vistas 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 companys contribution margin be?
| The companys contribution margin | $ |
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Advanced Financial Accounting
Authors: Thomas H. Beechy
5th Edition
0131236997, 9780131236998
