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Allocating constrained resources - In response to a growing awareness of gluten allergies, Outland 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
$130
$125
$120
Variable cost
$81
$86
$78
Fixed cost
18
15
20
Total cost
99
101
98
Gross profit
$31
$24
$22
Pounds of flour
2.5
2
Required
Question 1: Assuming no raw material constraints and unlimited demand for cookies, what type of cookie would maximize the company's contribution margin? Why
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