Question
The Snack Shack is a take-out food store at a popular beach resort. The owner is deciding how much refrigerator space to devote to four
The Snack Shack is a take-out food store at a popular beach resort. The owner is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows:
Selling price per case: Cola $18.80 Lemonade $20.75 Punch $26.90 Orange Juice $39.30
Variable cost per case: Cola $13.80 Lemonade $16.25 Punch $20.10 Orange Juice $30.10
Cases sold per foot of shelf space per day: Cola 7 Lemonade 12 Punch 24 Orange Juice 6
She 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 Snack Shack? Show your calculations. Please detail how you figure out the feet of shelf space per drink. I cannot figure it out.
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