Natural Orange Juice Cola Lemonade Punch Selling price per case $19.10 $20.25 $27.10 $39.50 Variable cost per case $15.90 $14.40 $21.50 $29.80 Cases sold per foot of shelf space per day 10 24 25 22 Miller 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. 1. Calculate the contribution margin per case of each type of drink. 2. A coworker of Miller's recommends that she maximize the shelf space devoted to those drinks with the highest contribution margin per case. Do you agree with this recommendation? Explain briefly. 3. What shelf-space allocation for the four drinks would you recommend for the Beach Comber? Show your calculations. Required

Consider the costs that are incurred by a local pizza business. Identify each cost as either expensed or depreciated and describe why that classification applies. • Cost for pizza dough and toppings • Cost to pay wages for janitor • Cost of new baking oven • Cost of new delivery van• Cost of furnishings in dining room • Utility costs for soda refrigerator

Stenback Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data: (Click the icon to view the data.) Prepare an analysis to show which product the company should emphasize. (Enter the units displayed per square foot - X Data table CIDS Product Per Item Designer Designer Moderately Priced 180 $ Units displayed per square foot: 65 Designer Moderately priced Contribution margin per unit Contribution margin per square foot of display space Capacity-Square feet of display space Total contribution margin at capacity ▼ Decision: * esc #t a $ 1 2 3 4 LOL WIER 15 % 5 T 6 44. & Y hp 7 FIS . 00 8 19 Average sale price Average variable costs Average contribution margin 115 20 Average fixed costs (allocated) Average operating income $ 95 $ 56 The Stenback Company store in Grand Junction, Colorado, has 11,000 square feet of floor space. If Stenback Company emphasizes moderately…

Stenback Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following​ data: 1​(Click the icon to view the​ data.)   Prepare an analysis to show which product the company should emphasize. ​(Enter the units displayed per square foot and the contribution margin per square foot to two decimal​ places.)       Product     Designer Moderately Priced   Units displayed per square foot:           Designer           Moderately priced           Contribution margin per unit ×   ×     Contribution margin per square foot of display space           Capacity-Square feet of display space ×   ×     Total contribution margin at capacity         ​Decision: (1)      1: Data Table   Per Item   Designer Moderately Priced Average sale price $220 $88…

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The Seashore Stand is a take-out food store at a popular beach resort. Cindy Smith, owner of the Seashore Stand, is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows: (Click to view the data.) 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. Read the requirements. Requirement 1. Calculate the contribution margin per case of each type of drink. Cola $ Cola Lemonade Punch Natural Orange Juice Total Selling price per case Variable cost per case Contribution margin per case Requirement 2. A coworker of Sexton's recommends that she maximize the shelf space devoted to those drinks with the highest contribution margin per case. Do you agree with this recommendation? Explain briefly. Feet of Shelf Space Lemonade 19.25 $ 13.80 Cola 20.60 $ 16.90 Punch A. This recommendation makes sense. It will allow…

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers the number of cruises and the number of passengers that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 85 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Vessel operating costs Advertising Administrative costs Insurance Fixed Cost per Month $6,600 $2,200 $5,900 $3,100 Required: Complete the company's planning budget for July. For example, vessel operating costs should be S6,600 per month plus $471.00 per cruise plus $3.10 per passenger. The company's sales should average $34.00 per passenger. The company's planning budget for July is based on 55 cruises and 3,150 passengers. Alyeski Tours Planning Budget For the Month Ended July 31 Revenue Expenses: Vessel…

K Moore Company sells both designer and moderately priced fashion accessories. Top management is deciding which product line to emphasize. Accountants have provided the following data: (Click the icon to view the data.) Prepare an analysis to show which product the company should emphasize. (Enter the units displayed per square foot and the contribution margin per square foot to two decimal places.) Units displayed per square foot: Designer Moderately priced Contribution margin per unit Contribution margin per square foot of display space Capacity-Square feet of display space Total contribution margin at capacity Product Data table Designer Moderately Priced Per Item Designer Moderately Priced Average sale price 185 $ 87 Average variable costs 105 22 Average contribution margin 80 65 Average fixed costs (allocated) Average operating income 20 10 $ 60 $ 55 The Moore Company store in Grand Junction, Colorado, has 14,000 square feet of floor space. If Moore Company emphasizes moderately…

Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The restaurant's owner wants to better understand his costs and hired a student intern to conduct an activity-based costing study. The intern identified three activities, completed the first-stage cost allocations and gathered the activity measure data shown below. Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of diners Number of parties served $ 12,760 5,800 parties Serving a diner Number of diners served $ 105,270 12,100 diners Serving drinks Number of drinks ordered $ 24,960 10,400 drinks The above costs exclude organization-sustaining costs such as rent, property taxes, and top-management salaries. Some costs, such as the cost of cleaning the linens that cover the restaurant's tables, vary with the number of parties served. Other costs, such as washing plates and glasses, depend on the number of diners served or the number of drinks served. Prior to the…

Mary Jones and Jack Smart have joined forces to start M&J Food Products, a processor of packaged shredded lettuce for institutional use. Jack has years of food processing experience, and Mary has extensive commercial food preparation experience. The process will consist of opening crates of lettuce and then sorting, washing, slicing, preserving, and finally packaging the prepared lettuce. Together, with help from vendors, they think they can adequately estimate demand, fixed costs, revenues, and variable cost per 5-pound bag of lettuce. They think a largely manual process will have monthly fixed cost of $50,000 and a variable cost of $2.50 per bag. They expect to sell 75,000 bags of lettuce per month. They expect to sell the shredded lettuce for $3.25 per 5-pound bag. Jack and Mary has been contacted by a vendor to consider a more mechanized process. This new process will have monthly fixed cost of $125,000 per month with a variable cost of $1.75 per bag. Based on the above…