The Sand Cruiser is a takeout food store at a popular beachside resort. Teresa Texton, owner...
The Sand Cruiser is a takeout food store at a popular beachside resort. Teresa Texton, owner of the Sand Cruiser, was deciding how much refrigerator space to devote to four different beverages. Appropriate data on the four beverages follow:
| Limeade | Lemonade | Ginger Ale | Grape Juice | ||||||||||||||||
| Sales price per case | $22.10 | $22.00 | $21.70 | $45.80 | |||||||||||||||
| Variable cost per case | 16.10 | 18.90 | 16.30 | 36.60 | |||||||||||||||
| Cases sold per foot of shelf space per day | 28 | 26 | 4 | 6 | |||||||||||||||
The contribution margin per case for Lemonade is:
Multiple Choice
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$3.80.
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$4.70.
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$3.70.
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$3.10.
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$8.20.
Homework Answers
| Lemonade | |
| Sales price per case | 22.00 |
| Less: Variable cost per case | 18.90 |
| Contribution margin per case | 3.10 |
| Option D $3.10 is correct |
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