The Seaside Shack is a take-out food store at a popular beach resort. Julia Jones, owner of the Seaside Shack, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows: Data Table E (Click to view the data.) Jones has a maximum front shelf space Read the requirements. ach drink Requirement 1. Calculate the contribut Natural $ Selling price per case Variable cost per case Cases sold per foot of shelf space per day Cola Lemonade Punch Orange Juice 19.20 $ 21.50 $ 27.10 $ 39.30 14.75 $ 16.40 $ 21.70 $ 29.70 23 4 25 22 $ Selling price per case Variable cost per case Contribution margin per case Print Done Requirement 2. A coworker of Jones's Explain briefly. you agree with this recommendation? O A. 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. OB. This recommendation does not make sense. The company should allocate equal shelf space to each product so the customer has plenty of options. OC. This recommendation makes sense. It will allow the company to maximize their contribution margin. Requirement 3. What shelf-space allocation for the four drinks would you recommend for the Seaside Shack? Show your calculations. Begin by calculating the amount that should be used to determine the allocation. (Round your answers to the nearest cent.) Natural Cola Lemonade Punch Orange Juice Allocate the shelf space to each product and show the effect it will have on the Seaside Shack's operations. (Round your answers to the nearest cent.) X i Requirements 1. Calculate the contribution margin per case of each type of drink. 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. 3. What shelf-space allocation for the four drinks would you recommend for the Seaside Shack? Show your calculations. Print Done Requirement 1. Calculate the contribution margin per case of each type of drink. Natural Cola Lemonade Punch Orange Juice 27.10 $ 39.30 Selling price per case $ 19.20 $ 21.50 $ 14.75 16.40 21.70 29.70 Variable cost per case Contribution margin per case 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. A. 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. B. This recommendation does not make sense. The company should allocate equal shelf space to each product so the customer has plenty of options. C. This recommendation makes sense. It will allow the company to maximize their contribution margin. Requirement 3. What shelf-space allocation for the four drinks would you recommend for the Seaside Shack? Show your calculations. Begin by calculating the amount that should be used to determine the allocation. (Round your answers to the nearest cent.) Natural Cola Lemonade Punch Orange Juice Allocate the shelf space to each product and show the effect it will have on the Seaside Shack's operations. (Round your answers to the nearest cent.) Requirement 3. What shelf-space allocation for the four drinks would you recommend for the Seaside Shack? Show your calculations. Begin by calculating the amount that should be used to determine the allocation. (Round your answers to the nearest cent.) Natural Cola Lemonade Punch Orange Juice Allocate the shelf space to each product and show the effect it will have on the Seaside Shack's operations. (Round your answers to the nearest cent.) Total Feet of per Foot of Shelf Space Shelf Space per Day Cola Lemonade Punch Natural Orange Juice Total The Seaside Shack is a take-out food store at a popular beach resort. Julia Jones, owner of the Seaside Shack, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows: Data Table E (Click to view the data.) Jones has a maximum front shelf space Read the requirements. ach drink Requirement 1. Calculate the contribut Natural $ Selling price per case Variable cost per case Cases sold per foot of shelf space per day Cola Lemonade Punch Orange Juice 19.20 $ 21.50 $ 27.10 $ 39.30 14.75 $ 16.40 $ 21.70 $ 29.70 23 4 25 22 $ Selling price per case Variable cost per case Contribution margin per case Print Done Requirement 2. A coworker of Jones's Explain briefly. you agree with this recommendation? O A. 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. OB. This recommendation does not make sense. The company should allocate equal shelf space to each product so the customer has plenty of options. OC. This recommendation makes sense. It will allow the company to maximize their contribution margin. Requirement 3. What shelf-space allocation for the four drinks would you recommend for the Seaside Shack? Show your calculations. Begin by calculating the amount that should be used to determine the allocation. (Round your answers to the nearest cent.) Natural Cola Lemonade Punch Orange Juice Allocate the shelf space to each product and show the effect it will have on the Seaside Shack's operations. (Round your answers to the nearest cent.) X i Requirements 1. Calculate the contribution margin per case of each type of drink. 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. 3. What shelf-space allocation for the four drinks would you recommend for the Seaside Shack? Show your calculations. Print Done Requirement 1. Calculate the contribution margin per case of each type of drink. Natural Cola Lemonade Punch Orange Juice 27.10 $ 39.30 Selling price per case $ 19.20 $ 21.50 $ 14.75 16.40 21.70 29.70 Variable cost per case Contribution margin per case 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. A. 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. B. This recommendation does not make sense. The company should allocate equal shelf space to each product so the customer has plenty of options. C. This recommendation makes sense. It will allow the company to maximize their contribution margin. Requirement 3. What shelf-space allocation for the four drinks would you recommend for the Seaside Shack? Show your calculations. Begin by calculating the amount that should be used to determine the allocation. (Round your answers to the nearest cent.) Natural Cola Lemonade Punch Orange Juice Allocate the shelf space to each product and show the effect it will have on the Seaside Shack's operations. (Round your answers to the nearest cent.) Requirement 3. What shelf-space allocation for the four drinks would you recommend for the Seaside Shack? Show your calculations. Begin by calculating the amount that should be used to determine the allocation. (Round your answers to the nearest cent.) Natural Cola Lemonade Punch Orange Juice Allocate the shelf space to each product and show the effect it will have on the Seaside Shack's operations. (Round your answers to the nearest cent.) Total Feet of per Foot of Shelf Space Shelf Space per Day Cola Lemonade Punch Natural Orange Juice Total