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Each moming Larry Imery stocks the drink case at Lanty's Beach Hut in Charlotte, North Carolina. Larry's Beach Hut has 110 linear teet of refrigerated
Each moming Larry Imery stocks the drink case at Lanty's Beach Hut in Charlotte, North Carolina. Larry's Beach Hut has 110 linear teet of refrigerated display space for cold drinks. Each linear too can hold either five 12-ounce cans or three 2D-ounce plastic or glass bottles. (Click the icon to view the information on the cold drinks. The beverage stand can sell all drinks stocked in the display Case sach morning. Read the requirements. Requirement 1. What is the constraining ector al Larry's Bcach Hut? What should Larry stock lo mexirrico profils? What is the maximum contribution margir he would gencrale from refrigeraled drinks cach day? The constraining factor is V. Larry's should stock the drink with the contribution margin Data Table X - X Requirements The beverage stand sells three types of cold drinks: 1. Cola in 12-02 cars for $1.10 per call 2. Boltled water in 20-oz. plastic bolles for $1.75 per bottle 3. Orange juice in 20-U2 glass blues for $2.10 xr bolle Larry's Beach Hut pays ita suppliers the following: 1. S0.20 oer 12-oz. can of cola 2. 50.45 per 20-oz. bottle of water 3. S0.75 - 20-12. bottle of orange juice Larry's Beach Hut's monthly fixed expenses include the following 1. What is the constraining factor at Larry's Beach Hut? What should Larry stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? 2. To provide variety to customers, Slipocse Larry refuses to devote more than 60 linear feet and no less than 20 linear feet to any individual product. Under this condition. how many linear feet of each crink should be slocked? How many units of each product will be available for salcoach day? 3. Assuming the product mix calculated in Requirement 2. what contribution marginwil be generated from refrigerated drinks each day? Hut rental......... $ S Refrigerator rental ...... Larry's salary .......... 9 Total fixed expenses .... 345 65 1,750 2,160
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