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The Beach Comber is a take-out food store at a popular beach resort. Sara Miller, owner of the Beach Comber. is deciding refrigerator space
The Beach Comber is a take-out food store at a popular beach resort. Sara Miller, owner of the Beach Comber. is deciding refrigerator space to devote to four different drinks Pertinent data on these four drinks are as follows: w much Sethng price per case Variable cost per case Cola $9.10 sugo Lemonade SIS90 24 Punch Natural Orange Juice sat so Cases sold per foot of shelf space per day 10 esso 22 Miller has a maximum front shelf space ot 12 feet to devote to the four drinks. She wants a minimum of foot and a maximum of 6 feet of front shelf space for each drink. 1. Calculate the contribution margin per case of each type of drink. 2. A coworker of Miller-s recommends that she maxinnize the shelf space devoted to those drinks with the highest contribution margin per case. Do you agree with this recommendation? Explain briefly. What shelf-space allocation for the four drinks would you recommend for the Beach Show your calculations.
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