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:

If Outland uses gluten-free flour in other products, will the allocation you recommend in part (c) change? Why or why not?

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