In response to a growing awareness of gluten allergies, Cullumber 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			$ 139				$ 134				$ 139
Variable cost			$ 80				$ 84				$ 88
Fixed cost			16				16				21
Total cost			96				100				109
Gross profit			$ 43				$ 34				$ 30
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 companys contribution margin? Oatmeal-Raisin/Sugar/Chocolate Chip (choose an option) b) Assume that, based on typical customer demand, Cullumber will sell 13,200 batches of chocolate chip cookies, 9,200 batches of sugar cookies, and 11,200 batches of oatmeal raisin cookies. What will the companys contribution margin be? The company's contribution margin $________

c) Cullumbers flour supplier has announced a shortage of gluten-free flour. As a result, Cullumber will only be able to purchase 55,400 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 $___________

d)If Cullumber uses gluten-free flour in other products, will the allocation you recommend in part (c) change?

No/Yes