Each moming. Ned Imery stocks the drink case at Ned's Beach Hut in Long Beach, California. Ned's Beach Hut has 110 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 12-ounce cans or four 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 Ned's Beach Hut? What should Ned stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is Ned's should stock the drink with the contribution margin. Complete the product mix analysis to determine which product would maximize Ned's profits: Ned's Beach Hut Product Mix Analysis grand-cola bottled water 12 oz Cans 20 oz. Bottles value-soda 20 oz. Bottles The beverage stand can sell all drinks stocked in the display case each morning Read the requirements The constraining factor is Ned's should stock the drink with the contribution margin Complete the product mix analysis to determine which product would maximize Ned's profits. Ned's Beach Hut Product Mix Analysis grand-cola bottled water 12 oz. Cans 20 oz. Bottles value-soda 20 oz. Bottles has the highest contribution margin per linear foot of shelf space. To maximize profits, Ned's should devote all its shelf space to (Round your answer to the nearest whole dollar.) The maximum contribution margin that Ned could generate each day from refrigerated drinks is Requirement 2. To provide variety to customers, suppose Ned refuses to devote more than 60 linear feet and no less than 10 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 Ned should stock his shelves, based on each product's contribution margin (CM)... 1st stock maximum contraint of linear ft. with product having the CM Next minimum constraint of Stock the remaining linear ft. with product having the CM linear ft. with product having the CM Now calculate the units available for sale based on the product mix determined above. grand-cola in 12 oz. cans: Units for sale cans bottled water in 20 oz bottles: value-soda in 20 oz bottles: 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 grand-cola in 12 oz cans: bottled water in 20 oz bottles: Requirement 3. Assuming the product mix calculated in Requirement 2, what contribution margin answers to the nearest whole dollar.) grand-cola in 12 oz. cans: bottled water in 20 oz. bottles: value-soda in 20 oz. bottles: Total Contribution Margin Data table The beverage stand sells three types of cold drinks: 1. Grand-Cola in 12-oz. cans for $1.55 per can 2. Bottled water in 20-oz. plastic bottles for $1.70 per bottle 3. Value Soda in 20-oz. glass bottles for $2.30 per bottle Ned's Beach Hut pays its suppliers the following: 1. $0.25 per 12-oz. can of grand-cola 2. $0.30 per 20-oz. bottle of bottled water 3. $0.80 per 20-oz. bottle of value-soda Ned's Beach Hut's monthly fixed expenses include the following: Hut rental $ 365 Refrigerator rental 60 Ned's salary 1,500 $ 1,925 Total fixed expenses Print Done - Requirements 1. What is the constraining factor at Ned's Beach Hut? What should Ned 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 Ned refuses to devote more than 60 linear feet and no less than 10 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? - X Print Done