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In response to a growing awareness of gluten allergies, Oriole 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, Oriole 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 Sugar Raisin Sales price $119 $110 $119 Variable cost $82 $78 $86 Fixed cost 16 15 19 64 Total cost 98 93 105 Gross profit $21 $17 $14 Pounds of flour 2.5 2.5 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 1.90 Chocolate Chip $ 7700 Sugar Oatmeal Raisin 39.1 What type of cookie would maximize the company's contribution margin? Oatmeal Raisin
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