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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