Each moming. Mike Rouse stocks the drink case at Miko's Beach Hut in Virginia Beach, Vegina Mike's Beach Hut has 115 linear feet of rotrigerated display space for cold drinks Each linear foot can hold either five 12-ounce cons of the 20-ounce plastic or glass bottles Click the icon to view the information on the cold drinks) The beverage stand can solat drinks stocked in the display care each morning Requirement 1. What is the constraining factor at Mike's Beach Hut? What should Mice stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is Mike's should stock the deink with the contribution margin Complete the product mix analysis to determine which product would maximize Mko's profits. Mike's Beach Hut Product Mix Analysis Just-cola root beer orange soda 20 ot, Bottles 12 2. Cans 2002 Bottles has the highest contribution margin perlinear foot of shelf space. To maximize profits, Mo's should devote all shelf space to Each moming, Mike Rouse stocks the drink case at Mike's Beach Hut in Virginia Beach Virginia Mike's Beach Hut has 115 linear foot 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 al drinks stocked in the display case each morning The maximum contrbution margin that Mike could generate each day from refrigerated drinks is Requirement 2. To provide variety to customers, suppose Mike refuses to devote more than 70 linear foot and no less than 5 inear foet to any individual product. Under this condition how many linear foot of each drink should be stocked? How many units of each product will be available for sale each day? show how Miko should stock his shelves, based on each product's contribution margin (CMX 1st stock maximum contraint of ineart with product having the CM Next minimum constraint of linear it with product having the CM Stock the remaining linear it 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 o cans cans root boor in 20 oz bottles bottles orange soda in 20 o bottles bottles Requirement 3. Assuming the product mix calculated in Requirement 2. what contribution margin will be generated from refrigerated drinks each day? (Round your answers to the nearest whole dollar) Contribution Margin cola in 12 con Toot bene in 2002 bottles Each moming Mike Rouse stocks the drink case at Mike's Beach Hut in Virginia Beach, Virginia Mike's Beach Hut has 115 inear 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 sick the icon to view the information on the cold drinks) The beverage stand can set all drinks stocked in the display case each morning CM Show how Mike should stock his shelves, based on each product's contribution margin (CM) 1st stock maximum contraint of lineart with product having the Next minimum constraint of linear it with product having the CM Stock the remaining linear it 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 ot cans cans Tootbeer in 20 o bottles bottles orange soda in 2002 bottles bottles Requirements. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigeratod drinks each day (Round your answers to the nearest Whole dollar) Contribution Margin cola in 12 o2 cans root boor in 20 oz. bottes orange soda in 200 bottles TO Data Table The beverage stand sells three types of cold drinks: 1. Just-Cola in 12-oz. cans for $1.60 per can 2. Root Beer in 20-oz. plastic bottles for $1.65 per bottle 3. Orange Soda in 20-oz. glass bottles for $2.20 per bottle Mike's Beach Hut pays its suppliers the following: 1. $0.15 per 12-oz. can of just - cola 2. $0.45 per 20-oz. bottle of root beer 3. $0.80 per 20-oz. bottle of orange soda Mike's Beach Hut's monthly fixed expenses include the following: Hut rental - $ 380 Refrigerator rental 75 Mike's salary 1,750 . Total fixed expenses $ 2,205
