Question: Relevant costs, contribution margin, product emphasis. The Beach Comber is a take out food store at a popular beach resort. Susan Sexton, owner of the

Relevant costs, contribution margin, product emphasis. The Beach Comber is a take out food store at a popular beach resort. Susan Sexton, owner of the Beach Comber, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows:

Natural Cola Lemonade Puch Orange Juice Selling price per case Variable cost


Sexton 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.

Natural Cola Lemonade Puch Orange Juice Selling price per case Variable cost per case Cases sold per foot of shelf space per day $18.80 S20.00 27.10 $14.20 S16.10 20.70 24 S39.20 S30.20 25 4

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