Cold drinks information Max's Beach Hut sells three types of cold drinks: 1. Coca-Cola in 341-mL cans for $1.50 per can 2. A & W Root Beer in 551-mL plastic bottles for $1.75 per bottle 3. Mountain Dew in 551-mL glass bottles for $2.20 per bottle Max's Beach Hut pays its suppliers the following: 1. $0.25 per 341-mL can of Coca-Cola 2. $0.40 per 551-mL bottle of A & W Root Beer 3. $0.75 per 551-mL bottle of Mountain Dew Max's Beach Hut's monthly fixed expenses include the following: Hut rental Refrigerator rental Max's salary. Total fixed oxnoncos 69 375 75 1,550 2,000 Requirements 1. What is Max's Beach Hut's constraining factor? What should Max stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? 2. To provide variety to customers, suppose Max refuses to devote more than 20 linear metres and no fewer than 3 linear metres to any individual product. Under this condition, how many linear metres of each drink should Max stock? How many units of each product will be available for sale each day? 3. Assuming the product mix calculated in Requirement 2, what contribution margin will Max generate each day? Each morning, Max Imery stocks the drink case at Max's Beach Hut in the Muskokas. Max's Beach Hut has 33 linear metres of refrigerated display space for cold drinks. Each linear metre can hold either 18 341-mL cans or 12 551-mL plastic or glass bottles. (Click the icon to view the information on the cold drinks.) Requirement 1. What is Max's Beach Hut's constraining factor? What should Max stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is Max's should stock the drink with the contribution margin. Max's Beach Hut Product Mix Analysis Coca-Cola 341-mL Cans A & W Root Beer 551-mL Bottles Mountain Dew 551-mL Bottles has the highest contribution margin per linear metre of shelf space. To maximize profits, Max's should devote all its shelf space to The maximum contribution margin that Max could generate each day from refrigerated drinks is $ (Round your answer to the nearest whole dollar.) Requirement 2. To provide variety to customers, suppose Max refuses to devote more than 20 linear metres and no fewer than 3 linear metres to any individual product. Under this condition, how many linear metres of each drink should Max stock? How many units of each product will be available for sale each day? Max refuses to devote more than 20 linear metres and no less than 3 linear metres to any individual product. Show how Max should stock his shelves, based on each product's contribution margin (CM): 1st stock maximum contraint of Next minimum constraint of Stock the remaining linear m with product having the CM: linear m with product having the CM: linear m with product having the CM: Coca-Cola in 341-mL cans: A & W Root Beer in 551-mL bottles: Mountain Dew in 551-mL bottles: Units for sale cans bottles bottles Requirement 3. Assuming the product mix calculated in Requirement 2, what contri nearest whole dollar.) Coca-Cola in 341-mL cans: A & W Root Beer in 551-mL bottles: Mountain Dew in 551-mL bottles: Total Contribution Margin has the highest contribution margin per linear metre of shelf space. To maximize profits, Max's should devote all its shelf space to Coca-Cola 341-mL cans A & W Root Beer 551-mL bottles ould generate each day from refrigerated drinks is $ (Round your answer to the nearest whole dollar.) ers, suppose Max refuses to devote more than 20 linear metres and no fewer than 3 linear metres to any individual product. Unde nk should Max stock? How many units of each product will be available for sale each day? Mountain Dew 551-mL bottles