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The Shore Store is a take-out food store at a popular beach resort. Sharon Connor, owner of the Shore Store, is deciding how much refrigerator
The Shore Store is a take-out food store at a popular beach resort. Sharon Connor, owner of the Shore Store, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows: : (Click to view the data.) Connor 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. Read the requirements. Requirement 1. Calculate the contribution margin per case of each type of drink. i Requirements - X Natural Punch Orange Juice 27.50 $ 39.30 20.10 29.90 Selling price per case Cola Lemonade 19.10 $ 20.20 $ 15.90 $ 1425 Variable cost per case 1. Calculate the contribution margin per case of each type of drink. 2. A coworker of Connor's recommends that she maximize the shelf space devoted to those drinks with the highest contribution margin per case. Do you agree with this recommendation? Explain briefly 3. What shelf-space allocation for the four drinks would you recommend for the Shore Store? Show your calculations. Contribution margin per case Print Done Data Table X Selling price per case Variable cost per case Cases sold per foot of shelf space per day $ $ Natural Cola Lemonade Punch Orange Juice 19.10 $ 20.20 $ 27.50 $ 39.30 14.25 $ 15.90 $ 20.10 $ 29.90 15 24 13 1 3 Print Done
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