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In response to a growing awareness of gluten allergies, Wildhorse 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, Wildhorse 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 $127.60 $109.80 $130.20
Variable cost $78 $61 $87
Fixed cost 18 13 21
Total cost 96.00 74.00 108.00
Gross profit $31.60 $35.80 $22.20
Pounds of flour 2 2 1.5

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 Chocolate ChipOatmeal RaisinSugar

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