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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
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