E11-27 (similar to) The Seaside Shack is take-out food store at a popular beach resort. Rachel Levin, owner of the Seaside Shack, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows: (Click to view the data.) Levin has a maximum front shelf space of 12 feet to devote to the four drinks. She wants a minimum of 1 foot and a maximum of 6 feet of front shelf space for each drink. Read the requirements. Contribution margin per case 5.00 2.90 $ 7.45 8.70 Requirements Requirement 2. A coworker of Levin's recommends that she maximize the shelf space devoted to those drinks with the highest c A. This recommendation makes sense. It will allow the company to maximize their contribution margin. B. This recommendation does not make sense. It fails to recognize that the company has limited shelf space and therefore w C. This recommendation does not make sense. The company should allocate equal shelf space to each product so the custo Requirement 3. What shelf-space allocation for the four drinks would you recommend for the Seaside Shack? Show your calcula Begin by calculating the amount that should be used to determine the allocation. (Round your answers to the nearest cent.) 1. Calculate the contribution margin per case of each type of drink. 2. A coworker of Levin's recommends that she maximize the shelf space devoted to those drinks with the highest contribution margin per case. Do you agree with this recommendation? Explain briefly. 3. What shelf-space allocation for the four drinks would you recommend for the Seaside Shack? Show your calculations. Print Done Cola Lemonade Punch Natural Orange Juice Contribution margin per case $ 5.00 $ 24 x Cases sold per foot of shelf space per day 2.90 $ 6 7.45 $ 25 8.70 5 $ 120.00 $ 17.40 $ 186.25 $ 43.50 Daily contribution margin per ft of shelf space Allocate the shelf space to each product and show the effect it will have on the Seaside Shack's operations. (Round your answers t Daily Contribution Margin Cola Lemonade Punch Natural Orange Juice Total Feet of Shelf Space per Foot of Shelf Space Total Contribution Margin per Day Data Table Selling price per case Variable cost per case Cases sold per foot of shelf space per day Natural Cola Lemonade Punch Orange Juice $ $ 18.75 $ 13.75 $ 20.00 $ 17.10 $ 27.75 $ 39.20 20.30 $ 30.50 24 6 25 5 Print Done Questio