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: Sales price Variable cost Fixed cost Total cost Gross profit Pounds of flour (a) Cookies Chocolate Chip Chocolate Chip $117 $65 Sugar Oatmeal Raisin *|*|*|* $ Sugar $110 $ $70 14 84 $26 2.5 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.) Oatmeal Raisin $117 $75 19 Contribution Margin 94 $23 2 What type of cookie would maximize the company's contribution margin?

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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.