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Please help me with part C! In response to a growing awareness of gluten allergies, Singletary Cookie Company tried using gluten-free flour in its three
Please help me with part "C"!
In response to a growing awareness of gluten allergies, Singletary Cookie Company 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: (a) Your answer is correct. Assuming no raw material constraints and unlimited demand for cookies. Calculate contribution margin for Chocolate Chip, Sugar, Oatmeal Raisin cookies. (Round answers to 2 decimal places, e.g. 52.75.) What type of cookie would maximize the company's contribution margin? (b) Your answer is correct. Assume that based on typical customer demand, Singletary will sell 12, 200 batches of chocolate chip cookies, 8, 200 batches of sugar cookies, and 10, 200 batches of oatmeal raisin cookies. What will the company's contribution margin be? (c) Singletary's flour supplier has announced a shortage of gluten-free flour. As a result, Singletary will only be able to purchase 51, 100 pounds of flour. How many batches of each type of cookie should the company bake? What will the company's contribution margin beStep by Step Solution
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