The Beach Umbrella is a take-out food store at a popular beach resort. Susan Miller, owner of the Beach Umbrella, is deciding how much refrigerator space to devote to four different drinks. Pertinent data onthese four drinks are as follows:(Click to view the data.)Miller has a maximum front shelf space of 12 feet to devote to the four drinks. She wants a minimum of 1 foot and a maximum of 6 feet of front shelf space for each drink.Read the requirements.Requirement 1. Calculate the contribution margin per case of each type of drink.Selling price per caseVariable cost per caseContribution margin per caseRequirements$ColaLemonade18.25 $14.4020.75 $15.60Punch27.70 $20.10NaturalOrange Juice39.2530.401.Calculate the contribution margin per case of each type of drink.2. A coworker of Miller's recommends that she maximize the shelf space devoted to those drinks with the highest contribution marginper case. Do you agree with this recommendation? Explain briefly.3. What shelf-space allocation for the four drinks would you recommend for the Beach Umbrella? Show your calculations.X Data tableSelling price per caseVariable cost per caseCases sold per foot of shelf space per dayPrint$Cola6Lemonade18.25 $14.40 $Done2420.75 $15.60 $NaturalPunch Orange Juice39.2530.4027.70 $20.10 $156-X

Variable costs are those costs which changes along with change in activity level or sales.…

Answered: The Beach Umbrella is a take-out food…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter14: The Balanced Scorecard And Corporate Social Responsibility

Section: Chapter Questions

Problem 4BE

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A coworker of Miller’s recommends that she maximize the shelf space devoted to those drinks with the highest contribution margin per case. Do you agree with this recommendation? Explain briefly
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Each morning, Mike Root stocks the drink case at Mike's Beach Hut in Myrtle Beach, South Carolina. The drink case has 90 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles. View the information on the cold drinks. MikeBeach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. - X Requirement 1. What is Mike's Beach Hut's constraining factor? What should Mike's Beach Hut stock to maximize profits? The constraining factor is linear feet of shelf space What should Mike's Beach Hut stock to maximize profits? Complete the product mix analysis to determine which product would maximize Mike's Beach Hut's profits. Yummy Time 12 oz. Cans Yummy Time 20 oz. Bottles Pretty Pop 20 oz. Bottles Sales price per unit Variable cost per unit Contribution margin per unit Units per linear foot of shelf space Contribution margin per linear foot of shelf space Cold Drinks Information Mike's Beach Hut…
The second picture is the data for question 15
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