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BADM Variety Inc. runs a small convenience store. It has one refrigerator in which it stocks 355 ml cans of soft drinks and 500 ml
BADM Variety Inc. runs a small convenience store. It has one refrigerator in which it stocks 355 ml cans of soft drinks and 500 ml cartons of orange juice. The beverages are kept on separate shelves. There are five shelves in the refrigerator. The owner only has time to stock the refrigerator once a day. The following is the additional information BADM Variety Inc. has provided: Selling price per unit Cost to BADM Variety Inc. per unit Units per shelf Daily demand in units Soft Drinks $1.75 0.50 130 600 500 Orange Juice $3.99 1.99 90 How many shelves should be allocated for each product? How much operating income would the company lose if it must stock at least two shelves of each beverage
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