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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: Chocolate Chip $117 $65 Sugar $110 Oatmeal Raisin $117 Sales price Variable cost $70 $75 19 Fixed cost 17 14 Total cost 82 84 94 Gross profit $35 $26 $23 Pounds of flour 2.5 2.5 2 2 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
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