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The Sand Cruiser is a takeout food store at a popular beachside resort. Teresa Texton, owner of the Sand Cruiser, was deciding how much refrigerator

The Sand Cruiser is a takeout food store at a popular beachside resort. Teresa Texton, owner of the Sand Cruiser, was deciding how much refrigerator space to devote to four different beverages. Appropriate data on the four beverages follow:

Limeade Lemonade Ginger Ale Grape Juice
Sales price per case $22.10 $22.00 $21.70 $45.80
Variable cost per case 16.10 18.90 16.30 36.60
Cases sold per foot of shelf space per day 28 26 4 6

The contribution margin per case for Lemonade is:

Multiple Choice

  • $3.80.

  • $4.70.

  • $3.70.

  • $3.10.

  • $8.20.

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