Each moming. Ned imery stocks the drink case at Ned's Beach Hut in Long Beach, Calfornia. Ned's Beach Hut has 110 linear feet of refrigerated display space for cold drinks: Each linear foot can hold ether six 12-ounce cans or four 20-ounce plastic or glass botles: (Cick the icon to view the information on the cold drinks.) The beverage ttand can sell all drinks stocked in the display case each morning Read the reguirements Requirement 1. What is the constraining factor at Ned's Beach Hut? What should Ned stock to maximize profits? What in the maximum contribution margin he could generate from retrigerated drinks each day? The constraining tactor 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. The beverage stand can self all drinks stocked in the dinplay case each morning Read the recuirementa The constraining factor is Neds should stock the drink with the contribution margin. Complele the produdt mix analyin to determine which product would maximize Ned's profits: has the hothent contribution margh per linear foot of shelf space. To maximize profits, Nods shoud bevote al its shelf space to ifound vour answer to the nearest whote doliar.Y The maximum contribution margin that Ned could generale each day from refngerated drinks is Requirement 2. To provide vanety to customers, suppose Ned refuses to devole moro than 00 linear feet and no less than 10 linear foet to any individual product. Under this condition, how many linear feet of each drink should be stocked? How many unils of each product will be avnitable for sale each day? Show how Ned should stock hit sholves, based on each products contribution margin (CM) ist stock maximum contraint of linear f. with product having the Next minimum coristraint of linear ft, with product having the Stock the remaining linear f, with product having the CM CM CM Now calculate the units availabie for sale based on the product mix determined above. Requirement 3. Assuming the product mix caloulated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day? (Round your answers to the nearest whole dollar.) Requirement 3. Assuming the product mix calculated in Requirement 2 , what contribution margin answers to the nearest whole dollar.) 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 20oz. 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 12oz. can of grand - cola 2. $0.30 per 20oz, bottle of bottled water 3. $0.80 per 200z. bottle of value - soda Ned's Beach Hut's monthly fixed expenses include the following: 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
