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 B (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 Factor contri nelf sp ermine 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. $0.20 per 12-oz. can of tobe - cola 2. $0.40 per 20-oz. bottle of fizzle pop 3. $0.75 per 20-oz. bottle of value - soda Larry's Beach Hut's monthly fixed expenses include the following: Hut rental .. 365 Refrigerator rental 80 Larry's salary 1,500 1945 Total fixed expenses fshelf spag Print highest cor Done its shelf sp ning factor at Larry's Beach Hut? What should Larry stock to maximize profits? What is the maximum contribution i et of shel Requirements to detern 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? Print Dane oot of shelf s the highest contribution margin per linear foot of shelf space. To maximize profits, Larry's should devote all its shelf snace to 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 linear feet of shelf space Larry's should stock the drink with the highest contribution margin. Complete the product mix analysis to determine which product would maximize Larry's profits Larry's Beach Hut Product Mix Analysis tobe-cola fizzle pop value-soda 12 oz. Cans 20 oz. Bottles 20 oz. Bottles Sales price per unit 1.45 1.70 2.15 0.20 0.40 0.75 Variable cost per unit Contribution margin per unit 1.25 1.3 1.45 Units per linear foot of shelf space Contribution margin per linear foot of shelf space V has the highest contribution margin per linear foot of shelf space to maximize profits, Larry's should devote all its shelf space to whole dollar) tobe-cola 12-oz cans number in the input fields and then continue to the next question fizzle pop 20-oz, bottles value-soda 20-oz bottles 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 OM linear ft with product having the linear ft with product having the linear ft with product having the Next minimum constraint of Stock the remaining OM CM Now calculate the units available for sale based on the product mix determined above Units for sale tobe-cola in 12 oz. cans cans bottles fizzle pop in 20 oz bottles value-soda in 20 oz bottles bottles 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 dollar.) 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 to the next