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?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6EB: Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

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

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