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 Sugar Oatmeal Raisin

Sales Price $119 110 119

Variable Cost 82 78 86

Fixed Cost 16 15 19

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

Chocolate Chip

Sugar

Oatmeal Raisin

What type of cookie would maximize the company's contribution margin?

Assume that, based on typical customer demand, Oriole will sell 11,200 batches of chocolate chip cookies, 7,200 batches of sugar cookies, and 9,200 batches of oatmeal raisin cookies. What will the company's contribution margin be?

The company's contribution margin

Oriole's flour supplier has announced a shortage of gluten-free flour. As a result, Oriole will only be able to purchase 46,400 pounds of flour.

How many batches of each type of cookie should the company bake?

Chocolate Chip

Sugar

Oatmeal Raisin

What will the company's contribution margin be?

The company's contribution margin

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