Can\'t get this question right please help!! Thanks In response to a growing awa

Question

Can't get this question right please help!! Thanks

In response to a growing awareness of gluten allergies, Oriole 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: Oatmeal Raisin $129.45 $87 21 108.00 $21.45 1.5 Chocolate Chip $131.80 Sales price Variable cost Fixed cost Total cost Gross profit Pounds of flour Sugar $111.60 $63 16 79.00 $32.60 $82 19 101.00 $30.80 Your answer is partially correct. Try again 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 49.80 Chocolate Chip 48.60 Sugar 42.45 Oatmeal Raisin What type of cookie would maximize the company's contribution margin? Oatmeal Raisin

Explanation / Answer

Type of cookie that would maximize the company's contribution margin: Chocolate Chip

Since there are no raw material constraints and unlimited demand, the Chocolate chip cookie which yields the highest contribution per unit will maximize the company's contribution margin.

The company's contribution margin: $1,049,775

Calculations:

Batches Chocolate Chip 12300 Sugar 0 Oatmeal Raisin 10300

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