Allocating constrained resources - In response to a growing awareness of gluten allergies, Outland 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:

Assume that, based on typical customer demand, Outland will sell 12,000 batches of chocolate chip cookies, 8,000 batches of sugar cookies, and 10,000 batches of oatmeal raisin cookies. What will the company's contribution margin be?

Sales price Variable cost Fixed cost Total cost Gross prot Pounds of our Chocolate Sugar Oatmeal Chip Raisin m M M $81 $86 $78 3 Q E 99 101 98 m g 5% 2.5 2.5 2