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The Wave Crave is a take-out food store at a popular beach resort, Julia Jones, owner of the Wave Crave, is deciding how much refrigerator

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The Wave Crave is a take-out food store at a popular beach resort, Julia Jones, owner of the Wave Crave, 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.) Jones 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 $ 19.10 $ 14.40 Requirement 1. Calculate the contribution margin per case of each type of drink Natural Cola Lemonade Punch Orange Juice Selling price per case 20.80 $ 27.90 $ 38.80 Variable cost per caso 17.10 21.90 30.30 Contribution margin per caso Requirement 2. A coworker of Jones'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 O A. This recommendation makes sense. It will allow the company to maximize their contribution margin. B. This recommendation does not make sense. It fails to recognize that the company has limited shelf space and therefore wants to maximize the contribution margin per foot of shelf space. C. This recommendation does not make sense. The company should allocate equal shelf space to each product so the customer has plenty of options Requirement 3. What shelf-space allocation for the four drinks would you recommend for the Wave Crave? Show your calculations. Begin by calculating the amount that should be used to determine the allocation, (Round your answers to the nearest cent.) Natural Lemonade Punch Orange Juice Cola Allocate the shelf space to each product and show the effect it will have on the Wave Crave's operations. (Round your answers to the nearest cent.) Total Foot of per Foot of Shelf Space Shelf Space por Day Cola Lemonade Punch Natural Orange Juice Total Data table Natural Selling price per case Variable cost per case Cases sold per foot of shelf space per day Cola Lemonade Punch Orange Juice 19.10 $ 20.80 $ 27.90 $ 38.80 14.40 $ 17.10 $ 21.90 $ 30.30 7 24 13 4 $ Print Done

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