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Each morning, Joel Rouse stocks the drink case at Joel's Beach Hut in Myrtle Beach, South Carolina. Joel's Beach Hut has 105 linear feet of

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Each morning, Joel Rouse stocks the drink case at Joel's Beach Hut in Myrtle Beach, South Carolina. Joel's Beach Hut has 105 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either seven 12ounce 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 uirements. Data table Requirement 1. What is the constraining factor at Joel's Beach Hut? What should Joel stock to maximize prots? What is the maximum contribution m The constraining factor is linear feet of shelf space . Joel's should stock the drink with the highest Complete the product mix analysis to determine which product would maximize Joel's prots, Joel's Beach Hut Product Mix Analysis contribution margin. The beverage stand sells three types of cold drinks: 1. Grand Cola in 12-oz. cans for $1.50 per can 2. Bottled water in 20~oz. plastic bottles far $1 ,65 per bottle 3. Right Cola in 20-02. glass bottles for $2.10 per bottle Joel's Beach Hut pays its suppliers the following: 1. $0.20 per 12oz. can of grand cola 2. $0.40 per 20-ozu bottle of bottled water 3. $0.75 per 20-02. bottle of right - cola Joel's Beach Hut's monthly xed expenses include the following: 380 grand-cola bottled water right-cola Hut rental """"""" $ ' 85 12 oz. Cans 20 oz. Bottles 20 oz. Bottles Refrigerator rental """ . 1,600 Sales price per unit 15 155 2_1 Joel 5 salary ........... 7 . . . $ 2.265 Variable cost per unit -2 -4 -75 Total fixed expenses . . . .= Contribution margin per unit 1.3 125 1.35 Units per linear foot of shelf space Contribution margin per linear foot of shelf space (Round your answer to the nearest whole dollar.) The maximum contribution margin that Joel could generate each day from refrigerated drinks is Requirement 2. To provide variety to customers. suppose Joel refuses to devote more than 65 linear feet and no less than 5 linear feet to any indiv each product will be available for sale each day? V has the highest contribution margin per linear foot of shelf space. To maximize prots , Joel's should devote all its shelf sp Show how Joel should stock his shelves. based on each product's contribution margin (CM): lsl stock maximum contraint of Next minimum constraint of Stock the remaining Requirements . What is the constraining factor at Joel's Beach Hut'? What should Joel stock to linear ft. with product having the CM: maximize profits? What is the maximum contribution margin he could generate from linear ft. with product having the CM: refrigerated drinks each day? linear ft. with product having the CM: . To provide variety to customers. suppose Joel refuses to devote more than 65 linear feet and no less than 5 linear feet to any individual product. Under this condition. how Now calculate the units available for sale based on the product mix determined above. many linear feet of each drink should be stocked? How many units of each product will be available for sale each day? . Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day

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