The Sand Cruiser is a takeout food store at a popular beachside resort. Teresa T

Question

The Sand Cruiser is a takeout food store at a popular beachside resort. Teresa Texton, owner of the Sand Cruiser, was deciding which of four different beverages to add to the refrigerator:

Assuming demand is not a limiting factor (i.e., customers will buy whichever beverage Teresa decides to put on the shelf), which beverage will produce the most profit:

A) Limeaid.

B) Lemonaid.

C) Ginger Ale.

D) Grape Juice.

E) Two or more are equally profitable.

Ginger Grape Limeaid Lemonaid Ale Iiice $2160 $23.00 $2160 $ 46.10 16 20182016.10 3620 Sales price per case Variable cost per case Cases sold per foot of shelf space per day 30 34 6

Explanation / Answer

Answer: Option B) Lemonaid

Limeaid Lemonaid Ginger Ale Grape Juice Sales price per case $ 21.60 23.00 21.60 46.10 Variable cost per case 16.20 18.20 16.10 36.20 Contribution per case $ 5.40 4.80 5.50 9.90 Cases sold per foot of shelf space 30 34 5 6 Total contribution per foot of shelf space $ 162.00 163.20 27.50 59.40

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