Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

eTextbook and Media

Attempts: 1 of 3 used

(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)

New attempt is in progress. Some of the new entries may impact the last attempt grading.

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statements

Authors:

1st Edition

1423223853, 9781423223856

More Books

Students also viewed these Accounting questions