ZOOM Ch. 12: Relevant Information & Differential Analysis Capacity Constraints at Snack Shack Snack Shack is a take-out food store at a popular beach resort. Cecelia Verdon, owner of the Snack Shack, is deciding how much refrigerator space to devote to four different beverages. Pertinent data on these four beverages are as follows: Cola $18.75 $13.75 Lemonade Punch $20.50 $15.60 Oran S39.30 $30.40 Selling price per case Variable cost per case Cases sold per foot of shelf space per day $27.75 $20.70 22 12 13 Ms. Verdon has a maximum front shelf space of 12 feet to devote to the four beverages. She wants a minimum of 1 foot and a maximum of 6 feet of front shelf space for each drink. 1. Calculate the contribution margin per case of each type of beverage 2. A coworker of Ms. Verdon's recommends that she maximize the shelf space devoted to those beverages with the highest contribution margin per case. Is this a good recommendation? Why or why not? 3. What shelf-space allocation for the four beverages do you recommend for Snack Shack? Show calculations to support your recommendation