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

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In response to a growing awareness of gluten allergies, Crane 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 Oatmeal Raisin Sugar Sales price $119 $111 $116 Variable cost $60 $65 $60 Fixed cost 18 13 21 Total cost 78 78 81 Gross profit $41 $33 $35 Pounds of flour 2.5 2.5 2 (a) 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 $ Sugar $ Oatmeal Raisin What type of cookie would maximize the company's contribution margin? e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b). Assume that, based on typical customer demand, Crane will sell 10,900 batches of chocolate chip cookies, 6,900 batches of sugar cookies, and 8,900 batches of oatmeal raisin cookies. What will the company's contribution margin be? The company's contribution margin $ (c). Crane's flour supplier has announced a shortage of gluten-free flour. As a result, Crane will only be able to purchase 45,050 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 e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (d). If Crane uses gluten-free flour in other products, will the allocation you recommend in part (c) change? e Textbook and Media Save for Later Attempts: 0 of 3 used Submit

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