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. Thecosts of producing a batch of 100 cookies are as follows:ChocolateOatmealChipSugarRaisinSales price$118$110$115Variable cost$68$72$68Fixed cost161520Total cost848788Gross profit$34$23$27Pounds of flour2.52.5

When some input is in limited capacity , then we need to find out contribution per input. For…

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?

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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