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Each morning, Larry Ivery stocks the drink case at Larry's Beach Hut in Galveston, Texas. Larry's Beach Hut has 125 linear feet of refrigerated display
Each morning, Larry Ivery stocks the drink case at Larry's Beach Hut in Galveston, Texas. Larry's Beach Hut has 125 linear feet of refrigerated 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 morning Read the requirements. DR 7 h Hut id Jold d. Data Table se each ch Hut? pould g Ty's shoy The beverage stand sells three types of cold drinks 1. ToBe - Cola in 12-oz cans for $1.45 per can 2. Fizzle Pop in 20-oz plastic bottles for $1 70 per bottle 3. Value - Soda in 20-oz glass bottles for $2.15 per bottle Larry's Beach Hut pays its suppliers the following 1. SO 20 per 12-oz can of tobe - cola 2. 50.40 per 20-oz. bottle of fizzle pop 3. S0.75 per 20-oz bottle of value - soda Larry's Beach Hut's monthly fixed expenses include the following I would s Beach t Mix And 365 80 Hut rental... $ Refrigerator rental ..... Larry's salary $ Total fixed expenses 1,500 1.945 Print Done ds and the se 1 Requirements - X h H y's WO 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 15 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? S Bel Mid Print Done Requirement 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? The constraining factor is Larry's should stock the drink with the contribution margin Complete the product mix Juld maximize Larry's profits linear feet of shelf space number of customers per day number of tobe-cola cans number of fizzle pop bottles number of value soda bottles each Hut x Analysis tobe cola 12 oz Cans fizzle pop value-soda 20 oz Bottlos 20 oz. Bottles Larry's Beach Hut Product Mix Analysis tobe-cola fizzle pop value-soda 12 oz. Cans 20 oz. Bottles 20 oz. Bottles ToBe-Cola 12-oz cans Fizzle Pop 20-oz bottles Value-Soda 20-oz bottles has the highest contribution margin per linear foot of shelf space. To maximize profits, Larry's should devote all its shelf space to Choose from any list or enter any number in the input fields and then continue to the next question The maximum contribution margin that Larry could generate each day from refrigerated drinks is Requirement 2. To provide variety to customers, suppose Larry refuses to devote more than 70 linear feet and no less than 15 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? Show how Larry should stock his shelves based on each product's contribution margin (CM) 1st stock maximum contraint of linear ft with product having the CM . Next minimum constraint of Stock the remaining 0 CM 15 Now calculate the units available fo 40 nined above 70 125 tobe-cola in 12 oz cans . fizzle pop in 20 oz bottles value-soda in 20 oz bottles bottles bottles ? Choose from any list or enter any number in the input fields and then continue to the next question int of : of linear ft with product having the linear ft with product having the linear ft with product having the Jailable for sale based on the product mix determi highest lowest middle Units for sale cans products contnbution margin (CM) tof linear it with product having the linear it with product having the linear it with product having the 12 cans of lobe cola 2002 Bottles of fizzle pop 2012 bottles of valde soda ailable for sale based on the product mix determined above Units for sale cans Requirement 3. Assuming the product mix calculated in Requirement 2. what contribution margin will be generated from refrigerated drinks each day? (Round your answers to the nearest whole dolar) Contribution Margin tobe-cola in 12 oz cans fizzle pop in 20 oz bottles value-soda in 20 oz bottles Total Choose from any list or enter any number in the input fields and then continue
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