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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
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: Oatmeal Raisin Chocolate Chip $117 $65 Sugar $110 Sales price Variable cost $70 $117 $75 19 Fixed cost 17 14 Total cost 82 84 94 Gross profit $35 $26 $23 Pounds of flour 2.5 2.5 2 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 $ 52 Chocolate Chip $ 40 Sugar $ 42 Oatmeal Raisin What type of cookie would maximize the company's contribution margin? Chocolate Chip ^ (b) Assume that, based on typical customer demand, Cullumber will sell 11,000 batches of chocolate chip cookies, 7,000 batches of sugar cookies, and 9,000 batches of oatmeal raisin cookies. What will the company's contribution margin be? The company's contribution margin $
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