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O 1 but of Lavender Plantations Pty Ltd advertises weekly specials and makes sure that the shelf space (17 metres) at the entrance to the
O 1 but of Lavender Plantations Pty Ltd advertises weekly specials and makes sure that the shelf space (17 metres) at the entrance to the store showcases the specials. For the current week, its three products are being advertised at special prices. Each product must be allocated shelf space. Candles Soaps Detergent Contribution margin per product (at special price) $12 $42 Minimum shelf space required per product 3 metres 4 metres 7 metres $30 Required: How should the shelf space be allocated to the three products to maximise the profits from the weekly specials? Candles Soaps Detergent Contribution margin per limiting factor (per metre) $ $ To maximise profit, the 17 metres of available shelf space should be allocated as follows: Candles: metres Soaps: metres Detergent: metres
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