Blossom’s flour supplier has announced a shortage of gluten-free flour. As a result, Blossom will only be able to purchase 44,600pounds of flour. How many batches of each type of cookie should the company bake?  The company’s contribution margin?

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Chapter10: Short-term Decision Making
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Blossom’s flour supplier has announced a shortage of gluten-free flour. As a result, Blossom will only be able to purchase 44,600pounds of flour.

How many batches of each type of cookie should the company bake? 

The company’s contribution margin?

In response to a growing awareness of gluten allergies, Blossom 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
Oatmeal
Chip
Sugar
Raisin
Sales price
$118
$110
$115
Variable cost
$68
$72
$68
Fixed cost
16
15
20
Total cost
84
87
88
Gross profit
$34
$23
$27
Pounds of flour
2.5
2.5
Transcribed Image Text:In response to a growing awareness of gluten allergies, Blossom 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 Oatmeal Chip Sugar Raisin Sales price $118 $110 $115 Variable cost $68 $72 $68 Fixed cost 16 15 20 Total cost 84 87 88 Gross profit $34 $23 $27 Pounds of flour 2.5 2.5
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