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Monteagudo-Playa SA is a take-away food store at a popular beach resort Consuelo Herreros owner of Monteagudo-Playa is deciding how much refrigerator space to devote to

Monteagudo-Playa SA is a take-away food store at a popular beach resort. Consuelo Herreros, owner of Monteagudo-Playa, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows: Consuelo has a maximum front shelf-space of 12 metres to devote to the four drinks. She wants a minimum of 1 metre and a maximum of 6 metres of front shelf-space for each drink. Required 1. What is the contribution margin per case of each type of drink? 2. A co-worker of Consuelo s recommends that she maximise the shelf-space devoted to those drinks with the highest contribution margin per case. Evaluate this recommendation. 3. What shelf-space allocation for the four drinks would you recommend for Monteagudo- Playa?

Jun 19 2020 View more View Less

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