Question
Ocean and Fish is a takeout food store at a popular beachside resort. Tommy Tillett, owner of Ocean and Fish, is deciding how much refrigerator
Ocean and Fish is a takeout food store at a popular beachside resort. Tommy Tillett, owner of Ocean and Fish, is deciding how much refrigerator space to devote to each of four different beverages. Appropriate data on the four beverages follow: Limeade Lemonade Ginger Ale Grape Juice Sales price per case $ 21.20 $ 25.00 $ 22.20 $ 45.30 Variable manufacturing costs per case 12.70 14.50 11.90 32.10 Variable selling cost per case 3.00 6.00 3.00 3.00 Cases sold per foot of shelf space per day 32 32 4 8 Ocean and Fish has a maximum 12 feet of front shelf space to devote to the four beverages combined. Tommy wants to use a minimum of two feet and a maximum of seven feet of front shelf space for each beverage. The contribution margin per case for Limeade is: Multiple Choice $5.60. $6.50. $5.50. $16.30. $9.50.
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