Each morning, Joe Rouse stocks the drink case at Joe's Beach Hut in Charleston, South Carolina. Joe's Beach Hut has 130 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. View the information on the cold drinks. The beverage stand can sell all drinks stocked in the display case each morning. Information on the cold drinks - Requirements 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 75 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? The beverage stand sells three types of cold drinks: 1. Cola-Cola in 12-oz. cans for $1.45 per can 2. Bottled water in 20-oz. plastic bottles for $1.65 per bottle 3. Tobe - Cola in 20-oz. glass bottles for $2.25 per bottle Joe's Beach Hut pays its suppliers the following: 1. $0.10 per 12-oz. can of cola - cola 2. $0.45 per 20-oz. bottle of bottled water 3. $0.80 per 20-oz. bottle of tobe - cola Joe's Beach Hut's monthly fixed expenses include the following: Hut rental Refrigerator rental $ 360 65 1,500 Joe's salary. $ 1,925 Total fixed expenses. . Print Done Print Done