Maurice Tutor

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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 16 Feb 2018 My Price 6.00

Monteagudo-Playa SA

Re l ev ant c o s ts, c ontribution ma r gin, p r oduct emphasis .

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:

Natura Cola Lemonade Punch orange juice

 

Selling price per case

 

€108.00

 

€115.20

 

€158.40

 

€230.40

Variable costs per case

Cases sold per metre

of shelf-space per day

€81.00

 

25

€91.20

 

24

€120.60

 

4

€181.20

 

5

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 recommenda- tion.

3 What shelf-space allocation for the four drinks would you recommend for Monteagudo- Playa?

 

 

 


Answers

Maurice Tutor
(5)
Status NEW Posted 16 Feb 2018 04:02 PM My Price 6.00

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