Question

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:

Answer 1

$5.40

Step-by-step explanation:

Calculation for the contribution margin per case for Limeade

First step is to find the Variable cost per case of Limeade using this formula

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

Variable cost per case of Limeade= 12.20 + 4

Variable cost per case of Limeade= $16.20

Now let calculate for Contribution margin per case for Limeade using the formula

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

Contribution margin per case for Limeade= 21.60 - 16.20

Contribution margin per case for Limeade= $5.40

Therefore the Contribution margin per case for Limeade will be $5.40