The Seashore Stand is a take-out food store at a popular beach resort. Susan Sexton, owner of the Seashore Stand, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows:

Required
1. Calculate the contribution margin per case of each type of drink.
2. A coworker of Sexton's recommends that she maximize the shelf space devoted to those drinks with the highest contribution margin per case. Evaluate this recommendation.
3. What shelf-space allocation for the four drinks would you recommend for the Seashore Stand? Show your calculations.

Selling price per case Variable cost per case Cases sold per foot of shelf space per day S18.75 S13.75 22 Cola emonade Punch Natural Orange Juice $27.75 S20.70 $20.50 $15.60 12 $39.30 $30.40 13