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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 | $21.90 | $23.00 | $22.20 | $47.10 |
Variable cost per case | 16.20 | 18.30 | 16.30 | 35.60 |
Cases sold per foot of shelf space per day | 28 | 29 | 6 | 6 |
The contribution margin per case for Lemonade is:
$6.30. | ||
$5.40. | ||
$4.70. | ||
$5.30. | ||
$9.80. |
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