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In response to a growing awareness of gluten allergies, Pharoah 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, Pharoah 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 $131 $125 $131 Variable cost $83 $82 $86 Fixed cost 16 15 19 Total cost 99 97 105 Gross profit $32 $28 $26 Pounds of flour 2.5 2.5 2 Pharoah's flour supplier has announced a shortage of gluten-free flour. As a result, Pharoah will only be able to purchase 51,800 pounds of flour. How many batches of each type of cookie should the company bake? Chocolate Chip Sugar Oatmeal Raisin Batches 25900 What will the company's contribution margin be? The company's contribution margin Tevthe $ 1165500
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