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Leviafan [203]
2 years ago
11

The Sand Cruiser is a takeout food store at a popular beachside resort. Teresa Texton, owner of the Sand Cruiser, was deciding h

ow much refrigerator space to devote to four different beverages. Appropriate data on the four beverages follow:Limeade Lemonade Ginger Ale Grape JuiceSales price per case $22.10 $21.00 $22.10 $46.30Variable cost per case 15.90 18.10 15.90 35.50Cases sold per foot of shelf space per day 28 22 6 4The contribution per foot of shelf space per day for Limeade is:
Business
1 answer:
Vanyuwa [196]2 years ago
5 0

Answer: $6.2

Explanation: Contribution margin is the amount of revenue left after paying for the variable cost, it can be formulated as follows :-

contribution =  sales - variable cost

In case of Limeade:-

sale price = $22.10

Variable cost = $15.90

so, putting the values into equation we get :-

contribution per foot = $22.10 - $15.9 = $6.2

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