**The Wave Crave Case Study****Overview:**The Wave Crave is a take-out food store at a popular beach resort. Cindy Smith, the owner, is deciding how much refrigerator space to allocate to four different drinks. The drinks have specific sales data:- **Shelf Space Constraint:** 12 feet total, with a minimum of 1 foot and a maximum of 6 feet per drink.**Data Table:**| Drink | Selling Price/Case | Variable Cost/Case | Cases Sold/Foot/Day ||-----------------------|---------------------|--------------------|---------------------|| Cola | $19.25 | $14.00 | 8 || Lemonade | $19.50 | $15.60 | 22 || Punch | $27.30 | $20.70 | 25 || Natural Orange Juice | $38.75 | $29.90 | 23 |**Requirements:**1. **Calculate Contribution Margin per Case for Each Drink:** - **Formula:** Contribution Margin = Selling Price - Variable Cost2. **Shelf Space Allocation:** - A coworker suggests maximizing shelf space for drinks with the highest contribution margin. Evaluate this strategy.3. **Recommendation for Shelf Space Allocation:** - Propose a shelf space distribution for the four drinks, supported by calculations.**Summary:**This case requires analyzing each drink's financial contribution and strategizing shelf space allocation to optimize profit, considering logistical constraints.

1. Cola Lemonade Punch Natural Orange Juice Selling price $19.25 $19.50 $27.30 $39.75 Variable cost per case $14.00 $15.60 $20.70 $29.90 Contribution margin per case $5.25 $3.90 $6.60 $9.852. Cola Lemonade Punch Natural Orange Juice Contribution margin per case $5.25 $3.90 $6.60 $9.85 Sales(no of cases) per foot of shelf space 8 22 25 23 Daily contribution per foot of front shelf space $42 $85.8 $165 $226.55 This recommendation does not make sense. It fails to recognize that the company has limited shelf space and therefore wants to maximize the contribution margin per foot of shelf space. The argument fails to recognize that shelf space is the constraining factor. There are only 12 feet of front shelf space to be devoted to drinks.3. Cola Lemonade Punch Natural Orange Juice Contribution margin per case $5.25 $3.90 $6.60 $9.85 Sales(no of cases) per foot of shelf space 8 22 25 23 Daily contribution per foot of front shelf space $42 $85.8 $165 $226.55 Feet ofShelf Space Daily Contribution per Foot of Front Shelf Space Total ContributionMargin per Day Natural Orange Juice 6 $226.55 $1,359.3 Punch 4 $165 $660 Lemonade 1 $85.8 $85.8 Cola 1 $42 $42 $2,147.1