Each morning, Joel Root stocks the drink case at Joel's Beach Hut in Long Beach, Califomia. Joel's Beach Hut has 120 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 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 moming. Read the requirements Requirement 1. What is the constraining factor at Joel's Beach Hut? What should Joel stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is 7. Joel's should stock the drink with the contribution margin. i Data Table 0 Requirements The beverage stand sells three types of cold drinks: 1. Right - Cola in 12-oz. cans for $1.50 per can 2. Energy Drink in 20-oz. plastic bottles for S1.65 per bottle 3. Orange Soda in 20-oz. glass bottles for $2.20 per bottle Joel's Beach Hut pays Its suppliers the following: 1. $0.10 per 12-oz. can of right-cola 2. $0.40 per 20-oz. bottle of energy drink 3. $0.65 per 20 oz. bottle of orange soda Joel's Beach Hut's monthly fixed expenses include the following: 1. What is the constraining factor at Joe's Beach Hut? What should Joel 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 Joel refuses to devote more than 65 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? 355 Print Done Hut rental.............. $ Refrigerator rental Joel's salary $ Total fixed expenses 75 1,650 2,080 ? Print Done Clear All Check Answer Each morning, Joel Root stocks the drink case at Joel's Beach Hut in Long Beach, Califomia. Joel's Beach Hut has 120 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 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 moming. Read the requirements Requirement 1. What is the constraining factor at Joel's Beach Hut? What should Joel stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is 7. Joel's should stock the drink with the contribution margin. i Data Table 0 Requirements The beverage stand sells three types of cold drinks: 1. Right - Cola in 12-oz. cans for $1.50 per can 2. Energy Drink in 20-oz. plastic bottles for S1.65 per bottle 3. Orange Soda in 20-oz. glass bottles for $2.20 per bottle Joel's Beach Hut pays Its suppliers the following: 1. $0.10 per 12-oz. can of right-cola 2. $0.40 per 20-oz. bottle of energy drink 3. $0.65 per 20 oz. bottle of orange soda Joel's Beach Hut's monthly fixed expenses include the following: 1. What is the constraining factor at Joe's Beach Hut? What should Joel 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 Joel refuses to devote more than 65 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? 355 Print Done Hut rental.............. $ Refrigerator rental Joel's salary $ Total fixed expenses 75 1,650 2,080 ? Print Done Clear All Check
