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Monteagudo-Playa SA is a take-away food store at a popular beach resort. Consuelo Herreros, owner of Monteagudo-Playa, is deciding how much refrigerator space to devote
Monteagudo-Playa SA is a take-away food store at a popular beach resort. Consuelo Herreros, owner of Monteagudo-Playa, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows: Cola Lemonade Punch orange juice Selling price per case 110 115 160 230 Variable costs per case 80 90 120 180 Cases sold per meter of shelf-space per day 20 for coke, 25 for lemonade, 5 for punch, 10 for orange juice Consuelo has a maximum front shelf-space of 14 meters to devote to the four drinks. She wants a minimum of 1 meter and a maximum of 7 meters of front shelf-space for each drink. According to the shelf space given to each type of drink, what will be the total contribution margin per day? Please choose one: a. $ 625 b. $ 4,375 c. $ 8,075 D. $ 6,751.2 Clear my choice
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