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The Shelley Company is a take-out food store at a popular beach resort. Shelley, owner of the company, is deciding how much refrigerator space to
The Shelley Company is a take-out food store at a popular beach resort. Shelley, owner of the company, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows: Cola Lemonade Punch Orange Juice Contribution Margin per $4.70 $4.35 $5.60 $9.70 case Cases sold per foot of shelf 10 24 space per day 30 16 Shelley has a maximum front shelf space of 12 feet to devote to the four drinks. She wants a minimum of 1 foot and a maximum of 6 feet of front shelf space for each drink. What shelf-space allocation for the four drinks would you recommend for the Shelley Company? 3 cases of each drink per foot of shelf space O 6 cases of Orange juice and 6 cases of Punch per foot of shelf space O 6 cases of Punch, 4 cases of Orange Juice, 1 case of Lemonade and 1 case of Cola per foot of shelf space. 6 cases of Orange Juice, 4 cases of Punch, 1 case of Lemonade and 1 case of Cola per foot of shelf space. None of the above
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