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:

A.

B,

C.

D.

Sales price Variable cost Fixed cost Total cost Gross profit Pounds of flour Chocolate Chip $136 $78 18 96 $40 2.5 Sugar $131 $77 13 90 $41 2.5 Oatmeal Raisin $136 $80 21 101 $35 2 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? Oatmeal Raisin Sugar Chocolate Chip edia $ $ LA Assume that, based on typical customer demand, Wildhorse will sell 12,900 batches of chocolate chip cookies, 8,900 batches of sugar cookies, and 10,900 batches of oatmeal raisin cookies. What will the company's contribution margin be? The company's contribution margin $ Wildhorse's flour supplier has announced a shortage of gluten-free flour. As a result, Wildhorse will only be able to purchase 54,050 pounds of flour. How many batches of each type of cookie should the company bake? Batches Chocolate Chip Sugar Oatmeal Raisin What will the company's contribution margin be? The company's contribution margin If Wildhorse uses gluten-free flour in other products, will the allocation you recommend in part (c) change? Yes No