Contribution Margin per type of cookie:

Choc. Chip $53, Sugar $51, Oat. Raisin $52

Cullumber's flour supplier has announced a shortage of gluten-free flour. As a result, Cullumber will only be able to purchase 50,450 pounds of flour. How many batches of each type of cookie should the company bake? What will the company's contribution margin be?

In response to a growing awareness of gluten allergies, Cullumber 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 $128 $123 $128 Variable cost $75 $72 $76 Fixed cost 18 13 20 Total cost 93 85 96 Gross profit $35 $38 $32 Pounds of flour 2.5 2.5 2 In response to a growing awareness of gluten allergies, Cullumber 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 $128 $123 $128 Variable cost $75 $72 $76 Fixed cost 18 13 20 Total cost 93 85 96 Gross profit $35 $38 $32 Pounds of flour 2.5 2.5 2