bargain bran is a large discount supermarket. Profits have declined, so the manager has collected data on revenues and costs for different food categories. The following data pertain to some of the frozen foods that bargain bran sells. To facilitate comparisons, the manager has listed average price and cost information for each category in equivalent square-foot packages:

			FROZEN	FROZEN
	ICE CREAM	JUICES	DINNERS	VEGETABLES
Selling price per unit	$12.30	$12.40	$24.00	$9.40
(square-foot package)
Variable costs per unit	$8.00	$9.50	$20.20	$7.10
(square-foot package)
Minimum square footage required	21	21	21	21
Maximum square footage allowed	150	150	150	150

The manager wants a maximum of 370 square feet devoted to the four categories in this table.

Requirements

(a)	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?
(b)	What other factors might the manager consider in deciding on the amount of shelf space per category?

Requirement (a) 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
Contribution margin per unit
Allocation in square footage