Each morning, Joe Rouse stocks the drink case at Joe's Beach Hut in Charlotte, North Carolina. Joe's Beach Hut has 105 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12-oun 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 Joe's Beach Hut? What should Joe stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is Joe's should stock the drink with the contribution margin. Data table Requirements The beverage stand sells three types of cold drinks: 1. ToBe-Cola in 12-oz. cans for $1.50 per can 2. Bottled water in 20-oz. plastic bottles for $1.85 per bottle 3. Value - Soda in 20-oz. glass bottles for $2.20 per bottle Joe's Beach Hut pays its suppliers the following: 1. $0.25 per 12-oz. can of tobe-cola 2. $0.35 per 20-oz. bottle of bottled water 3. $0.65 per 20-oz. bottle of value - soda Joe's Beach Hut's monthly fixed expenses include the following: 1. What is the constraining factor at Joe's Beach Hut? What should Joe 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 Joe refuses to devote more than 70 linear feet and no less than 5 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? Hut rental Refrigerator rental $ 365 70 1,450 Joe's salary $ 1,885 Total fixed expenses Print Done Clear all Check answer