Question: Only need help with part C In response to a growing awareness of gluten allergies, Crane Bakery tried using gluten-free flour in its three most
Only need help with part C
In response to a growing awareness of gluten allergies, Crane 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 | Sugar | Oatmeal Raisin | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales price | $119 | $111 | $116 | |||||||||
| Variable cost | $60 | $65 | $60 | |||||||||
| Fixed cost | 18 | 13 | 21 | |||||||||
| Total cost | 78 | 78 | 81 | |||||||||
| Gross profit | $41 | $33 | $35 | |||||||||
| Pounds of flour | 2.5 | 2.5 | 2 | |||||||||
(a)
Correct answer icon
Your answer is correct.
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 | |
|---|---|---|
| Chocolate Chip | $enter a dollar amount rounded to 2 decimal places | |
| Sugar | $enter a dollar amount rounded to 2 decimal places | |
| Oatmeal Raisin | $enter a dollar amount rounded to 2 decimal places |
What type of cookie would maximize the companys contribution margin?
| select a type of cookie SugarChocolate ChipOatmeal Raisin |
eTextbook and Media
Assistance Used
- eTextbook
Attempts: 1 of 3 used
(b)
Correct answer icon
Your answer is correct.
Assume that, based on typical customer demand, Crane will sell 10,900 batches of chocolate chip cookies, 6,900 batches of sugar cookies, and 8,900 batches of oatmeal raisin cookies. What will the companys contribution margin be?
| The companys contribution margin | $enter the companys contribution margin in dollars |
eTextbook and Media
Attempts: 1 of 3 used
(c)
New attempt is in progress. Some of the new entries may impact the last attempt grading.
Your answer is incorrect.
Cranes flour supplier has announced a shortage of gluten-free flour. As a result, Crane will only be able to purchase 45,050 pounds of flour. How many batches of each type of cookie should the company bake?
| Batches | ||
|---|---|---|
| Chocolate Chip | enter a number of batches | |
| Sugar | enter a number of batches | |
| Oatmeal Raisin | enter a number of batches |
What will the companys contribution margin be?
| The companys contribution margin | $enter the companys contribution margin in dollars |
eTextbook and Media
Assistance Used
- eTextbook
Save for Later
Attempts: 1 of 3 used
Submit Answer
(d)
Correct answer icon
Your answer is correct.
If Crane uses gluten-free flour in other products, will the allocation you recommend in part (c) change?
| select an option NoYes |
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
