Each morning, Joel Cole stocks the drink case at Joel's Beach Hut in Myrtle Beach, South Carolina. The drink case has 90 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or five 20-ounce bottles. BE (Click the icon to view the information on the cold drinks.) Joel's Beach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. Requirement 1. What is Joel's Beach Hut's constraining factor? What should Joel stock to maximize profits? The constraining factor is linear feet of shelf space What should Joel stock to maximize profits? Complete the product mix analysis to determine which product would maximize Joel's profits. Every-Pop 12 oz. Cans Every-Pop 20 oz. Bottles 1.70 ToBe 20 oz. Bottles Sales price per unit 1.60 2.05 0.45 0.50 Variable cost per unit 0.70 Contribution margin per unit 1.20 1.35 Units per linear foot of shelf space Contribution margin per linear foot of shelf space Decision: Stock Requirement 2. Suppose Joel's Beach Hut refuses to devote more than 55 linear feet to any individual product. Under this condition, how many linear feet of each drink should Joel's stock? How many units of each product will be available for sale each day? (Abbreviation used: CM = contribution margin.) Joel's Beach Hut should stock its shelves as follows: First stock CM per linear foot - linear feet with the product that has the linear feet with the product that has the Next stock CM per linear foot - How many units of each product will be available for sale each day based on the product mixed determined in the preceding step? (For entries with a $0 balance, make sure to enter "O" in the appropriate cell.) Units for sale cans Every-Pop in 12 oz. cans: Every-Pop in 20 oz. bottles: bottles ToBe in 20 oz. bottles: bottles Data Table Joel's Beach Hut sells three types of cold drinks: 1. Every - Pop in 12-oz. cans for $1.60 per can 2. Every - Pop in 20-oz. bottles for $1.70 per bottle 3. ToBe in 20-oz. bottles for $2.05 per bottle Joel's Beach Hut pays its suppliers: 1. $0.45 per 12-oz. can of Every - Pop 2. $0.50 per 20-oz. bottle of Every Pop 3. $0.70 per 20-oz. bottle of ToBe Joel's Beach Hut's monthly fixed costs include: Hut rental 390 Refrigerator rental 80 1,600 Joel's salary 2,070 Total fixed costs Print Print Done Done This hallhaaltaat ATshetshe. Requirements 1. What is Joel's Beach Hut's constraining factor? What should Joel stock to maximize profits? 2. Suppose Joel's Beach Hut refuses to devote more than 55 linear feet to any individual product. Under this condition, how many linear feet of each drink should Joel's stock? How many units of each product will be available for sale each day? Print Print Done Done Each morning, Joel Cole stocks the drink case at Joel's Beach Hut in Myrtle Beach, South Carolina. The drink case has 90 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or five 20-ounce bottles. BE (Click the icon to view the information on the cold drinks.) Joel's Beach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. Requirement 1. What is Joel's Beach Hut's constraining factor? What should Joel stock to maximize profits? The constraining factor is linear feet of shelf space What should Joel stock to maximize profits? Complete the product mix analysis to determine which product would maximize Joel's profits. Every-Pop 12 oz. Cans Every-Pop 20 oz. Bottles 1.70 ToBe 20 oz. Bottles Sales price per unit 1.60 2.05 0.45 0.50 Variable cost per unit 0.70 Contribution margin per unit 1.20 1.35 Units per linear foot of shelf space Contribution margin per linear foot of shelf space Decision: Stock Requirement 2. Suppose Joel's Beach Hut refuses to devote more than 55 linear feet to any individual product. Under this condition, how many linear feet of each drink should Joel's stock? How many units of each product will be available for sale each day? (Abbreviation used: CM = contribution margin.) Joel's Beach Hut should stock its shelves as follows: First stock CM per linear foot - linear feet with the product that has the linear feet with the product that has the Next stock CM per linear foot - How many units of each product will be available for sale each day based on the product mixed determined in the preceding step? (For entries with a $0 balance, make sure to enter "O" in the appropriate cell.) Units for sale cans Every-Pop in 12 oz. cans: Every-Pop in 20 oz. bottles: bottles ToBe in 20 oz. bottles: bottles Data Table Joel's Beach Hut sells three types of cold drinks: 1. Every - Pop in 12-oz. cans for $1.60 per can 2. Every - Pop in 20-oz. bottles for $1.70 per bottle 3. ToBe in 20-oz. bottles for $2.05 per bottle Joel's Beach Hut pays its suppliers: 1. $0.45 per 12-oz. can of Every - Pop 2. $0.50 per 20-oz. bottle of Every Pop 3. $0.70 per 20-oz. bottle of ToBe Joel's Beach Hut's monthly fixed costs include: Hut rental 390 Refrigerator rental 80 1,600 Joel's salary 2,070 Total fixed costs Print Print Done Done This hallhaaltaat ATshetshe. Requirements 1. What is Joel's Beach Hut's constraining factor? What should Joel stock to maximize profits? 2. Suppose Joel's Beach Hut refuses to devote more than 55 linear feet to any individual product. Under this condition, how many linear feet of each drink should Joel's stock? How many units of each product will be available for sale each day? Print Print Done Done
