In response to a growing awareness of gluten allergies, Wildhorse Bakery tried using gluten free...
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In response to a growing awareness of gluten allergies, Wildhorse 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 Oatmeal Raisin Sugar Sales price $136 $131 $136 Variable cost $78 $77 $80 Fixed cost 18 13 21 Total cost 96 90 101 Gross proht $40 $41 $35 Pounds of flour 2.5 2.5 2 (a) Your answer is correct. Assurning 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, es, 5275.) Cookies Contribution Margin 58 Chocolate Chip 54 Sugar 56 Oatmeal Raisin What type of cookie would maximize the company's contribution margin? Chocolate Chip (b) Your answer is incorrect. Assume that, based on typical customer demand, Wildhorse will sell 12,900 batches of chocolate chip cookies, 8,900 batches of sugar cookies, and 10,900 batches of oatmeal raisin cookies. What will the company's contribution margin be? The company's contribution margin
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