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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 $131.80 Oatmeal Sales price Variable cost Fixed cost Total cost Gross profit Pounds of flour Sugar $111.60 $63 16 79.00 $32.60 Raisin $129.45 $87 21 108.00 $21.45 1.5 $82 19 101.00 $30.80 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 12,300 batches of chocolate chip cookies, 8,300 batches of sugar cookies, and 10,300 batches of oatmeal raisin cookies. What will the company's contribution margin be? The company's contribution margins
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