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suming no raw material constraints and unlimited demand for cookies. Calculate c

ID: 2453911 • Letter: S

Question

suming no raw material constraints and unlimited demand for cookies.

Calculate contribution margin for Chocolate Chip, Sugar, Oatmeal Raisin cookies. (Round answers to 2 decimal places, e.g. 52.75.)

ssume that based on typical customer demand, Singletary will sell 11,700 batches of chocolate chip cookies, 7,700 batches of sugar cookies, and 9,700 batches of oatmeal raisin cookies. What will the company’s contribution margin be?


Cookies Contribution Margin Chocolate Chip $48.6 Sugar $47.8 Oatmeal Raisin

$42.3

Explanation / Answer

$1,346,990.00

Thus, Company's Total Contribution Margin is             $ 1,346,990.00 in Total and

                                                                                            $ 46.29 per unit.

Cookies Contribution Margin Per Unit Total Unit Sold Total Contribution Margin Chocolate Chip $48.60 11,700 $568,620.00 Sugar $47.80 7,700 $368,060.00 Oatmeal Raisin $42.30 9,700 $410,310.00 Total 29,100

$1,346,990.00