Part 1: Based on the data presented in the Spreadsheet Template below (CM Breakeven tab):

• Calculate the contribution margin (CM) for each of the three products sold at the cookie business.
• Calculate the weighted average CM.
• Calculate the breakeven point.

Discuss the results based on your calculations as far as which type of cookie you think is the most profitable, which has the highest CM, etc.

Cookie Business
	Chocolate Chip	Sugar	Specialty	Total
Units Sold	1,500,000	980,000	300,000	2,780,000
Sales	$ 1,875,000.00	$ 882,000.00	$ 1,050,000.00	$ 3,807,000.00
Less: Variable Costs	$ 690,000.00	$ 205,800.00	$ 81,000.00	$ 976,800.00
Contribution Margin	$ 1,185,000.00	$ 676,200.00	$ 969,000.00	$ 2,830,200.00
Less: Common Fixed Costs				$ 125,000.00
Profit				$ 2,705,200.00
Per item Contribution Margin
Weighted Average Contribution Margin
Break-even point in units