Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2 Beach South Carolina. The drink case has 115 21 st Data Table - . x fil et Ned's Beach Hut sells three types of

image text in transcribed
image text in transcribed
image text in transcribed
2 Beach South Carolina. The drink case has 115 21 st Data Table - . x fil et Ned's Beach Hut sells three types of cold drinks: 1. Licious - Ade in 12-oz. cans for $1.60 per can 2. Licious - Ade in 20-oz. bottles for $1.75 per bottle 3. Right - Cola in 20-oz. bottles for $2.15 per bottle Ned's Beach Hut pays its suppliers: 1. $0.40 per 12-oz. can of Licious - Ade 2. $0:50 per 20-oz. bottle of Licious - Ade 3. $0.70 per 20-oz. bottle of Right - Cola Ned's Beach Hut's monthly fixed costs include: Hut rental $ 355 Refrigerator rental 85 1,850 Ned's salary 2,290 Total fixed costs $ el Print Done Each morning, Ned Kranton stocks the drink case at Ned's Beach Hut in Myrtle Beach, South Carolina. The drink caso has 115 linear feet of refrigerated drink spoo Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles (Click the icon to view the information on the cold drinks) Ned's Beach Hut can sell all the drinks stocked in the display case each morning Read the requirements Requirement 1. What is Ned's Beach Hut's constraining factor? What should Ned stock to maximize profits? The constraining factor is What should Ned stock to maximize profits? Complete the product mix analysis to determine which product would maximize Ned's profits. Licious-Ado Licious-Ade Right-Cola 12 oz. Cans 20 oz. Bottles Sales price per unit Variable cost per unit 20 O Bottles Contribution margin per unit Units per linear foot of shelf space Contribution margin per linear foot of shelf space Decision: Stock Requirement 2. Sunnen Ned's Ranch Hutahas to date marn than 7 finnar fatin any individualne nder this condition ww mainnar fratelach theme and then continue to the next question case at Neo's Beach Hut in Myrtle Beach, South Carolina. The drink case has 115 linear feet of refrigerated drink space Each linear foot can hold either seven 12-ounce cans or three 20 ounce bottles (Click the icon to view the information on the cold drinks.) Ned's Beach Hut can sell all the drinks stocked in the display case each morning. Read the requirements Contribution margin per unit Units per linear foot of shell space Contribution margin per linear foot of uhell space Decision: Stock Requirement 2. Suppose Ned's Beach Hut refuses to devoto more than 75 linear feet to any individual product. Under this condition, how many inoar foot of each drink should Ned's stock? How many units of each product will be available for sale onch day? (Abbreviation used: CM contribution margin) Ned's Beach Hut should stock its shelves as follows: First stock linear foot with the product that has the CM per linear foot- Next stock linear feet with the product that has the CM perlingarfoot- How many units of each product will be available for sale oach day based on the product mixed determined in the preceding stap? (For entries with a 50 balance, mako sure to enter in the appropriate coll.) Licious-Ade in 12 oz cans: cans Licious-Ade in 20 oz. bottles bottles Right-Cola in 20 oz. bottles: bottles her in the innuit fields and then continue to the next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Case Studies In Strategic ManagementHow Executive Input Enables Students Development

Authors: Gunther Friedl, Andreas Biagosch

1st Edition

3319955543, 9783319955544

More Books

Students also viewed these Accounting questions