Question

Question 10 1 points Save Answer Sea and Sand is a takeout food store at a popular beachside resort. Tommy Tillett, owner of Sea and Sand, was deciding how much refrigerator space to devote to each of four different beverages. Appropriate data on the four beverages follow: Limeade $21.60 Sales price per case Variable mfg. costs per case Variable selling cost per case Cases sold per foot of shelf space per day Lemonade $23.00 14.201 4.00 Ginger Ale $21.60 12.10| 4.00 Grape Juice $46.10 32.20 4.00 12.20 4.00 30 28 5 Sea and Sand has a maximum 14 feet of front shelf space to devote to the four beverages combined. Tommy wants to use a minimum of two feet and a maximum of seven feet of front shelf space for each beverage. The contribution margin per case for Limeade is: O $5.50. O $6.40. $17.60. O $16.20. O $9.40.

Answer 1

Selling price per case of Limeade = $21.60

Variable manufacturing cost per case = $12.20

Variable selling cost per case = $4

Variable cost per case of Limeade = Variable manufacturing cost per case + Variable selling cost per case

= 12.20 + 4

= $16.20

Contribution margin per case for Limeade = Selling price per case of Limeade - Variable cost per case of Limeade

= 21.60 - 16.20

= $5.40

Note: There seems to be an error in drafting the answer options. The correct answer is $5.40 but none of the answer options match with this. Please check.

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