EACH MORNING JOHN DOE stocks the drink case at John beach hut, John Hut has 120 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 12-Ounce cans or five 20-Ounce plastic or glass bottles. The beverage stand can sell all drinks stocked in the display case each morning.

requirement 1

requirement 2

(john should stock its shelves so that the highest contribution margin uses the maximum linear, remaining feet should be devoted to the product that has the middle contribution margin of the three products, this allows the highest contribution margin the greatest amount of space to be allowed to be available for sale each day. Go ahead and select the product with the highest contribution margin that should have the maximum constraint that net will devote which is in this case 70 linear feet then select the next two individual products and linear your feet available. )

requirement 3

assuming the product mix calculated in requirement 2 what contribution margin will be generated from refrigerated drinks each day ?

calculate the contribution margin that john will generate each day assuming the product mix you determined in requirement 2

Data Table The beverage stand sells three types of cold drinks: 1. ToBe- Cola in 12-oz cans for $1.45 per can 2. Root Beer in 20-oz. plastic botties for $1.70 per bottle 3. Orange juice in 20-oz. glass bottles for $2 25 per bottle Joe's Beach Hut pays its suppliers the following: 1. 50.10 per 12-oz can of tobe- cola 2. S0.30 per 20-oz bottle of root beer 3. 50.75 per 20-oz bottle of orange juice Joe's Beach Hut's monthly fixed expenses include the following Hut renta Refrigerator rental Joe's salary Total fxed expenses 355 85 1,700 S 2.140 Print Done 2 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 70 linear feet and no less than 10 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? Print Done E8-26A (similar to) ch morning. Joe Root stocks the drink case at Joe's Beach Hut in Long Beach, (Click the icon to view the information on the coid dnnks e beverage stand can sell al drinks stockes in the display case each morning ead the requirements onis Joe's Beach Hut has 120 linear feet o equirement 1 What is the constraining factor at Joe's Beach Hut? What should Joe stock to mazomize profits? What is the maxir he constraining factor is inear feet of sheif space Joe's should stock the drink with the highest ompiete the product mix anaiysis to determine which product wrould maximize Joe's profits contribution margin. Joe's Beach Hut Product Mix Analysis orange juice 20 oz. Bottles tobe-cola root beer 12 oz Cans 20 oz Bottles