E26-13 Each morning, Ken Gaver stocks the drink case at Ken's Beach Hut in Sanibel Island. Florida.

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E26-13 Each morning, Ken Gaver stocks the drink case at Ken's Beach Hut in Sanibel Island. Florida. Ken's has 100 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 12-ounce cans or four 20-ounce plastic or glass bottles. Ken's sells three types of cold drinks: Coca-Cola in 12-oz cans, for $1.25 per can Coca-Cola in 20-oz plastic bottles, for $1.50 per bottle SoBe in 20-oz glass bottles, for $2.00 per bottle Ken's pays its suppliers: $0.25 per 12-oz can of Coca-Cola $0.30 per 20-oz bottle of Coca-Cola $0.70 per 20-oz bottle of SoBe Ken's monthly fixed expenses include Hut rental. Refrigerator rental Gaver's salary... Total fixed expenses. $ 250 50 1.000 $1,300 Ken's can sell all the drinks stocked in the display case each morning. 1. What is Ken's constraining factor? What should Gaver stock in order to maximize prof- its? 2. Suppose Ken's refuses to devote more than 60 linear feet to any individual product. Under this condition, how many linear feet of each drink should Gaver stock? How many units of each product will be available for sale each day?

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Accounting

ISBN: 9780130906991

5th Edition

Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones

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