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Need help with B and C. In response to a growing awareness of gluten allergies, Sheridan Bakery tried using gluten-free flour in its three most
Need help with B and C.
In response to a growing awareness of gluten allergies, Sheridan 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 $ 130 $116 $ 121 Sales price Variable cost Fixed cost $ 82 $75 $75 17 14 19 Total cost 99 89 94 Gross profit $31 $ 27 $ 27 Pounds of flour 2.5 2.5 2 (a) 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.) Cookies Contribution Margin $ 48 Chocolate Chip 41 Sugar Oatmeal Raisin 46 What type of cookie would maximize the company's contribution margin? Chocolate Chip (b) X Your answer is incorrect. Assume that, based on typical customer demand, Sheridan will sell 11.400 batches of chocolate chip cookies, 7.400 batches of sugar cookies, and 9,400 batches of oatmeal raisin cookies. What will the company's contribution margin be? The company's contribution margin 1,310,000 (c) Sheridan's flour supplier has announced a shortage of gluten-free flour. As a result, Sheridan will only be able to purchase 47,300 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 Step by Step Solution
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