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In response to a growing awareness of gluten allergies, Ivanhoe 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, Ivanhoe 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 | $118 | $110 | $118 | |||||||||
Variable cost | $76 | $75 | $78 | |||||||||
Fixed cost | 19 | 16 | 20 | |||||||||
Total cost | 95 | 91 | 98 | |||||||||
Gross profit | $23 | $19 | $20 | |||||||||
Pounds of flour | 2.5 | 2.5 | 2 |
Ivanhoe's flour supplier has announced a shortage of gluten-free flour. As a result, Ivanhoe will only be able to purchase 45,950 pounds of flour. How many batches of each type of cookie should the company bake? Batches 11100 Chocolate Chip 0 Sugar Oatmeal Raisin What will the company's contribution margin be? $ The company's contribution margin
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