Illustrate what price for lemonade would equate

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Snazzle Soft Drinks makes three products: iced tea, soda, and lemonade. The following data are available: Sales price per unit Variable cost per unit Contribution margin per unit Iced Tea $.90 .30 $.60 Soda $.60 .15 $.45 Lemonade $.50 .10 $.40 Snazzle is experiencing a bottleneck in one of its processes that affects each product as follows: Bottleneck process hours per unit (a) (b) Iced Tea 3 Soda 3 Lemonade 4 Using a theory of constraints (TOC) approach, rank the products in terms of profitability. What price for lemonade would equate its profitability to that of soda?

Reference no: EM13120894

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