Question: Problem 4 - Volume Trade-Off Limited-Resource Decision (22 points): Landshark's Grocery Store is a small corner grocery store and shelf space is very limited. Management

 Problem 4 - Volume Trade-Off Limited-Resource Decision (22 points): Landshark's Grocery

Problem 4 - Volume Trade-Off Limited-Resource Decision (22 points): Landshark's Grocery Store is a small corner grocery store and shelf space is very limited. Management must decide how to allocate shelf space for salsa. Landshark's has been given an opportunity to sell a very popular brand of salsa produced by Bobby Tutor, a popular rock star. The unique bottle is taller and thinner than bottles from the other popular brands on the market, increasing its visibility on the shelf. Following are sales and cost data on the new salsa and the three other brands presently sold by Robinson's: Sales price per jar Cost to purchase Contribution margin Bottles per foot of shelf space Salsa #1 $2.50 1.25 $1.25 Salsa #2 $2.75 1.35 $1.40 Salsa #3 $3.00 1.50 $1.50 New Salsa $4.00 3.20 $0.80 10 9 7 12 Rank the salsas on the basis of expected revenue if each is given 10 feet of shelf space and all bottles are expected to be sold. Rank #1 for the most revenue, #2 for the second most revenue, etc. Rank the salsas on the basis of expected contribution margin if each is given 10 feel of shelf space and all bottles are expected to be sold. Rank #1 for the most contribution margin, #2 for the second most contribution margin, etc. On the basis of the information given, which salsa should get the most shelf space? Why

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