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Each morning. Larry Cole stocks the drink case at Larry's Beach Hut in Charleston, South Carolina. Larry's Beach Hut has 115 linear foet of refigerated

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Each morning. Larry Cole stocks the drink case at Larry's Beach Hut in Charleston, South Carolina. Larry's Beach Hut has 115 linear foet of refigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or three 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 moening. Read the reguirements Requirement 1. What is the constrairing factor at Larry's Beach Hut? What should Larry stock to maximize profits? What is the maximum contibufion margin he could generate from retrigerated drinks each day? The constraining factor is Larry's should stock the drink with the contribution margin. Complete the product mix analysis to determine which product would maximue Larry's profits. Data table The beverage stand sells three types of cold drinks: 1. ToBe - Cola in 120z. cans for $1.40 per can 2. Fizzle Pop in 200z. plastic bottles for $1.75 per bottle 3. Best-Cola in 200z. glass bottles for $2.25 per bottle Larry's Beach Hut pays its suppliers the following: 1. $0.20 per 12oz. can of tobe - cola 2. $0.45 per 20 oz. bottle of fizzle pop 3. $0.75 per 200z. bottle of best - cola Larry's Beach Hut's monthly fixed expenses include the following: Requirements 1. What is the constraining factor at Larry's Beach Hut? What should Larry 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 Larry 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? The constraining factor is Larry's should stock the drink with the contribution margin. Complete the product mix analysis to determine which product would maximize Larry's profits

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