Sensational Soft Drinks Makes Three Products: Iced Tea, Soda, and Lemonade

question 44

Essay

Sensational Soft Drinks makes three products: iced tea, soda, and lemonade. The following data are available:? $$\begin{array} { l r r r } & \text { Iced Tea } & \text { Soda } & \text { Lemonade } \\\text { Sales price per unit } & \$ 0.90 & \$ 0.60 & \$ 0.50 \\\text { Variable cost per unit } & 0.30 & 0.15 & 0.10 \\\text { Contribution margin per unit } & \underline { \$ 0.60 } & \mathbf { \$ 0 . 4 5 } & \mathbf { \$ 0 . 4 0 }\end{array}$$ Sensational is experiencing a bottleneck in one of its processes that affects each product as follows:


(a)Using a theory of constraints (TOC) approach, rank the products in terms of profitability.
(b)What price for lemonade would equate its profitability (contribution margin per bottleneck hour) to that of soda?

Learn the distinction between job enrichment, job enlargement, and job rotation and their implications on job design.

Identify strategies for setting and using labor standards to optimize organizational performance.

Understand how feedback mechanisms and job characteristics (like autonomy and skill variety) impact job satisfaction and performance.

Recognize ethical considerations in work environment decisions and their impact on stakeholder relationships.

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Definitions:

Benefits Principle

The concept that those who benefit from government services should pay taxes in proportion to the amount of benefits they receive.

Tax Burden

The measure of taxes that individuals or businesses must pay as a portion of their income or profit, reflecting the financial impact of taxation.

Antipoverty Programs

Government initiatives aimed at reducing poverty and improving living standards for the poor through financial aid, education, and job training.

Benefits Principle

A tax policy principle suggesting that taxes should be levied according to the benefits received by the taxpayer from government services.