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Each morning, Joel Smith stocks the drink case at oefs Beach Hut in Naples, Florida. Joels Beach Hut has 125 linear feet of refrigerated display

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Each morning, Joel Smith stocks the drink case at oefs Beach Hut in Naples, Florida. Joels Beach Hut has 125 linear feet of refrigerated display space for cold drinks Each linear foot can hold other five 12-ounce cans or four 20-ounce plastic or glass bottles (Cack 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 recitaments Requirement 1. What is the constraining factor at Joors 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 linear feet of shelf space Joel's should stock the drink with the highest contribution margin Complete the product me analysis to determine which product would maximize Joel's profits. Joel's Beach Hut Product Mix Analysis tobe-cola root er value-soda 12 oz Cans 20 oz Bottles 20 oz. Bottles Sates price per unit Variable cost per unit Contribution margin per unit Units per linear foot of shell space Contribution margin per linear foot of the space Data Table The beverage stand sells three types of cold drinks: 1. ToBe - Cola in 12-oz. cans for $1.60 per can 2. Root Beer in 20-oz. plastic bottles for $1.70 per bottle 3. Value - Soda in 20-oz. glass bottles for $2.25 per bottle Joel's Beach Hut pays its suppliers the following: 1. $0.25 per 12-oz. can of tobe - cola 2. $0.45 per 20-oz. bottle of root beer 3. $0.65 per 20-oz. bottle of value - soda Joel's Beach Hut's monthly fixed expenses include the following: Hut rental .. $ 355 Refrigerator rental 80 . Joel's salary 1,800 . $ 2,235 Total fixed expenses . Requirements 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? 2. To provide variety to customers, suppose Joel refuses to devote more than 75 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

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