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E Homework: M 8 Homework B - Graded Question 7, EM8-17 (sim... HW Score: 39%, 14.04 of 36 points Save Part 2 of 5 Points:
E Homework: M 8 Homework B - Graded Question 7, EM8-17 (sim... HW Score: 39%, 14.04 of 36 points Save Part 2 of 5 Points: 0.23 of 6 Each morning, Nick Stenback stocks the drink case at Nick's Beach Hut in Myrtle Beach, South Carolina. The drink case has 95 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or five 20-ounce bottles. (Click the icon to view the information on the cold drinks.) Nick's Beach Hut can sell all the drinks stocked in the display case each morning. X Read the requirements. Data table Nick's Beach Hut sells three types of cold drinks: Requirement 1. What is Nick's Beach Hut's constraining factor? What should Nick stock to maximize profits? 1. Right - Cola in 12-oz. cans for $1.60 per can 2. Right - Cola in 20-oz. bottles for $1.85 per bottle The constraining factor is linear feet of shelf space 3. Vitamin Plus in 20-oz. bottles for $2.30 per bottle What should Nick stock to maximize profits? Nick's Beach Hut pays its suppliers: 1. $0.20 per 12-oz. can of Right - Cola Complete the product mix analysis to determine which product would maximize Nick's profits. 2. $0.25 per 20-oz. bottle of Right - Cola Vitamin Plus 3. $0.65 per 20-oz. bottle of Vitamin Plus Right-Cola Right-Cola Nick's Beach Hut's monthly fixed costs include: 12 oz. Cans 20 oz. Bottles 20 oz. Bottles Hut rental $ 380 Sales price per unit Refrigerator rental 70 Variable cost per unit Nick's salary 1,800 Contribution margin per unit Total fixed costs $ 2,250 Units per linear foot of shelf space Contribution margin per linear foot of shelf space X Requirements 1. What is Nick's Beach Hut's constraining factor? What should Nick stock to maximize profits? 2. Suppose Nick's Beach Hut refuses to devote more than 60 linear feet to any individual product. Under this condition, how many linear feet of each drink should Nick's stock? How many units of each product will be available for sale each day? Help me solve this Etext pages Get more help - Clear all Check answer Print Done
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