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Soda Company makes three products (Orange Soda, Cream Soda, and Cherry Soda), all of which use a very rare ingredient called Nutra Sugar. Soda Company

Soda Company makes three products (Orange Soda, Cream Soda, and Cherry Soda), all of which use a very rare ingredient called Nutra Sugar. Soda Company can purchase only 500 ounces of Nutra Sugar per month from a South American source. Below are data for the three products:

Orange

Cream

Cherry

Unit selling price

$40

$32

$50

Unit variable cost

10

20

30

Unit contribution margin

$30

$12

$20

Nutra Sugar (ounces per unit)

10

15

20

How should Soda Company allocate the 500 ounces of Nutra Sugar, assuming it can sell unlimited quantities of all three produces?

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