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bearhunter [10]
3 years ago
13

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 o

f two feet and a maximum of seven feet of front shelf space for each beverage. The contribution margin per case for Limeade is:
Business
1 answer:
masya89 [10]3 years ago
6 0

Answer:

$5.40

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

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