Each moming, Larry Smith stocks the drink case at Larry's Beach Hut in Naples, Florida. Larry's Beach Hut has 120 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or three 20-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 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 Larry's should stock the drink with the 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 energy drink 12 or. Cans 2002 Bottles tobe-cola 200 Bottes has the highest contribution margin per linear foot of shelf space. To maximize profits, Larry's should devote all its shelf space to Round your answer to the nearest whole dolar) The maximum contribution margin that any could generate each day from refrigerated drinks is $ Requirement 2. To provide variety to customer Suppose 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 drink should be stocked? How many units of each product will be available for sale each day? Show how Larry should stock his shelves, based on each product's contribution margin (CM) 1st stock maximum contraint of linear it with product having the CM Next minimum constraint of lineart with product having the Stock the remaining near it with product having the CM Now calculate the units available for sale based on the product mix determined above Unforte utcoin 12 o cans energy drink in 20 oz. bottles lobe-cola in 20 oz. bottles bottles bottles Choose from any list or enter any number in the input fields and then continue to the next question Each morning, Larry Smith stocks the drink case of Larry's Beach Hut in Naples, Florida Larry's Beach Hut has 120 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12 ounce cans of the 20-ounce plastic or glass bottles Click the icon to view the information on the cold drinks) The beverage stand can sel all drinks stocked in the display case each moming Read the requirements just-cola energy drink tobe-cola 12 oz. Cans 20 oz. Bottles 20 OZ. Bottles has the highest contribution margin perinear foot of shelf space. To maximize profts, Larry's should devole all its shelf space to (Round your answer to the nearest whole dollar) The maximum contribution margin that Larry could generate each day from refrigerated drinksis Requirement 2. To provide variety to customers, suppose Larry refuses to devote more than 60 near feet and no less than 20 linear feet to any individual product. Under this condition, how many linear feet of each drink should be stocked? How many units of each product will be available for sale each day? Show how Larry should stock his shelves, based on each product's contribution margin (CM) 1st stock maximum contraint of linear it with product having the CM Next minimum constraint of near it with product having the CM Stock the remaining neart with product having the CM Now calculate the units available for sale based on the product mix determined above Units for sale just-cola in 12 oz cans cans energy drink in 20 oz. bottles bottles tobe-cola in 20 oz. bottles Requirement 3. Assuming the product mix calculated in Requirement 2. what contribution marginwil be generated from refrigerated drinks each day? Round your answers to the nearest whole Contribution Margin uslcola in 12 o2 cans: energy drink in 20 oz. bottles tobe-cola in 20 oz bottles Tote Data Table The beverage stand sells three types of cold drinks: 1. Just - Cola in 12-oz. cans for $1.40 per can 2. Energy Drink in 20-oz. plastic bottles for $1.85 per bottle 3. Tobe -Cola in 20-oz. glass bottles for $2.30 per bottle Larry's Beach Hut pays its suppliers the following: 1. $0.15 per 12-oz. can of just-cola 2. $0.40 per 20-oz. bottle of energy drink 3. $0.75 per 20-oz. bottle of tobe - cola Larry's Beach Hut's monthly fixed expenses include the following: Hut rental ... 355 Refrigerator rental... Larry's salary.. 1,450 1,870 Total fixed expenses Print Done Requirements 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, suppose 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 drink should be stocked? 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 be generated from refrigerated drinks each day? Print Done
