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In response to a growing awareness of gluten allergies, Sheridan 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, Sheridan 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

$132 $127 $132

Variable cost

$82 $82 $84

Fixed cost

18 13 20

Total cost

100 95 104

Gross profit

$32 $32 $28

Pounds of flour

2.5 2.5 2

(a)

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

$enter a dollar amount rounded to 2 decimal places

Sugar

$enter a dollar amount rounded to 2 decimal places

Oatmeal Raisin

$enter a dollar amount rounded to 2 decimal places

What type of cookie would maximize the companys contribution margin?

select a type of cookie SugarChocolate ChipOatmeal Raisin

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