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Bargain Barn is a large discount supermarket. Requirements Prots have declined, so the manager has collected (a) Given the manager's constraints, and data on revenues
Bargain Barn is a large discount supermarket. Requirements Prots have declined, so the manager has collected (a) Given the manager's constraints, and data on revenues and costs for different food assuming that the store can sell categories. The following data pertain to some of whatever is displayed on the shelves, the frozen foods that Bargain Barn sells. To what Shelf mix (i.e., what number of facilitate comparisons, the manager has listed square feet for each category in the average price and cost information for each table) will maximize Bargain Barn's category in equivalent square-foot packages: contribution margin from these four g (Click the icon to View the data.) categories? (b) What other factors might the manager consider in deciding on the amount of shelf space per category? Requirement {3) Given the manager's constraints, and assuming that the store can sell whatever is displayed on the shelves, what shelf mix (i.e., what number of square feet for each category in the table) will maximize Bargain Barn's contribution margin from these four categories? Complete the following table to determine the shelf mix allocation in square footage that will maximize Bargain Barn's contribution margin from these four categories. Frozen Frozen Ice Cream Juices Dinners Vegetables 25. _x 00 ' N (D Selling price per unit 9. Variable cost per unit Contribution margin per unit Hp) 01 U] L N O *4 N N c.) _\\ N 0') h.) on Allocation in square footage Data table FROZE N FROZEN ICE CREAM JUICES DINNERS VEGETABLES Selling price per unit $ 13.00 $ 12.90 $ 25.20 $ (square-foot package) Variable costs per unit $ 9.50 $ 10.20 $ 21.50 $ (square-foot package) Minimum square footage required 20 20 20 Maximum square footage allowed 115 115 115 The manager wants a maximum of 360 square feet devoted to the four categories in this table. -m 8.50 6.30 20 115
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