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Each moming. Larry Rouse stocks the drink case at Larry's Beach Hut in Virginia Beach, Virginia. Larry's Beach Hut has 105 linear feet of refrigerated

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Each moming. Larry Rouse stocks the drink case at Larry's Beach Hut in Virginia Beach, Virginia. Larry's Beach Hut has 105 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either seven 12-ounce cans or three 20-ounce plastic or glass bottles. ll (Click the icon to view the information on the cold drinks.) The beverage stand can sell all drinks stocked in the display case each morning. Read the requirements Requirement 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? The constraining factor is linear feet of shelf space Larry's should stock the drink with the highest contribution margin. Complete the product mix analysis to determine which product would maximize Larry's profits. Larry's Beach Hut Product Mix Analysis just-cola orange juice 12 oz. Cans 20 oz. Bottles 20 oz. Bottles Sales price per unit Variable cost per unit Contribution margin per u Units per linear foot of shelf space 1.45 0.20 1.25 1.65 0.45 1.20 2.15 nit 1.35 margin per linear foot of shelf Data Table The beverage stand sells three types of cold drinks: 1. Just Cola in 12-oz. cans for $1.45 per can 2. Energize- Ade in 20-oz. plastic bottles for $1.65 per bottle 3. Orange juice in 20-oz. glass bottles for $2.15 per bottle Larry's Beach Hut pays its suppliers the following 1. S0.20 per 12-oz. can of just-cola 2. $0.45 per 20-oz, bottle of energize- ade 3. $0.80 per 20-oz. bottle of orange juice Larry's Beach Hut's monthly fixed expenses include the following Hut rental Refrigerator rental Larry's salary Total fixed expenses 370 85 1,500 1,955 PrintDone

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