Question
Need assistance with how to calculate Part C only In response to a growing awareness of gluten allergies,PharoahBakery tried using gluten-free flour in its three
Need assistance with how to calculate Part C only
In response to a growing awareness of gluten allergies,PharoahBakery 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$130$115$120Variable cost$83$74$78Fixed cost181321Total cost1018799Gross profit$29$28$21Pounds of flour2.52.52
(a)
Correct answer icon
Your answer is correct.
Assuming no raw material constraints and unlimited demand for cookies, calculate contribution margin per batch for Chocolate Chip, Sugar, Oatmeal Raisin cookies.(Round answers to 2 decimal places, e.g. 52.75.)
CookiesContribution Margin
Chocolate Chip$
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?
select a type of cookie
Oatmeal RaisinSugarChocolate Chip
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(b)
Correct answer icon
Your answer is correct.
Assume that, based on typical customer demand,Pharoahwill sell11,300batches of chocolate chip cookies,7,300batches of sugar cookies, and9,300batches of oatmeal raisin cookies. What will the company's contribution margin be?
The company's contribution margin$
enter the company's contribution margin in dollars
eTextbook and Media
Attempts: 1 of 3 used
(c)
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Your answer is incorrect.
Pharoah's flour supplier has announced a shortage of gluten-free flour. As a result,Pharoahwill only be able to purchase46,850pounds of flour.
How many batches of each type of cookie should the company bake?
Batches
Chocolate Chipenter a number of batches
Sugarenter a number of batches
Oatmeal Raisinenter a number of batches
What will the company's contribution margin be?
The company's contribution margin$
enter the company's contribution margin in dollars
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