Question
need assistance In response to a growing awareness of gluten allergies, Wildhorse Bakery tried using gluten-free flour in its three most popular cookies. After several
need assistance
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 | $136 | $131 | $136 | |||||||||
Variable cost | $78 | $77 | $80 | |||||||||
Fixed cost | 18 | 13 | 21 | |||||||||
Total cost | 96 | 90 | 101 | |||||||||
Gross profit | $40 | $41 | $35 | |||||||||
Pounds of flour | 2.5 | 2.5 | 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 | $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 company's contribution margin?
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