Each morning, Larry Root stocks the drink case at Larry's Beach Hut in Long Beach, California. Larry's Beach Hut has 115 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. 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. Data table Requirements The beverage stand sells three types of cold drinks: 1. Cola-Cola in 12-oz. cans for $1.60 per can 2. Energy Drink in 20-oz. plastic bottles for $1.65 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. $0.10 per 12-oz. can of cola-cola 2. $0.30 per 20-oz. bottle of energy drink 3. $0.70 per 20-oz. bottle of value - soda Larry's Beach Hut's monthly fixed expenses include the following: 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? Hut rental ..... $ 370 Refrigerator rental 75 1,450 Larry's salary $ 1,895 Total fixed expenses Print Done Print Done