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Each morning, Mark Kranton stocks the drink case at Mark's Beach Hut in Myrtle Beach, South Carolina. The drink case has 115 linear feet of
Each morning, Mark Kranton stocks the drink case at Mark's Beach Hut in Myrtle Beach, South Carolina. The drink case has 115 linear feet of refrigerated drink space. Each linear foot can hold either six 12-ounce cans or three 20-ounce bottles. (Click the icon to view the information on the cold drinks.) Mark's Beach Hut can sell all the drinks stocked in the display case each morning. Read the requirements Requirement 1. What is Mark's Beach Hut's constraining factor? What should Mark stock to maximize profits? The constraining factor is Data table Mark's Beach Hut sells three types of cold drinks: 1. ToBe in 12-oz. cans for $1.50 per can 2. ToBe in 20-oz. bottles for $1.90 per bottle 3. Energy - Ade in 20-oz. bottles for $2.25 per bottle Mark's Beach Hut pays its suppliers: 1. $0.30 per 12-oz. can of ToBe 2. $0.35 per 20-oz. bottle of ToBe 3. $0.60 per 20-oz. bottle of Energy - Ade Mark's Beach Hut's monthly fixed costs include: - Requirements Hut rental $ 360 Refrigerator rental 85 1. What is Mark's Beach Hut's constraining factor? What should Mark stock to maximize profits? 2. Suppose Mark's Beach Hut refuses to devote more than 85 linear feet to any individual product. Under this condition, how many linear feet of each drink should Mark's stock? How many units of each product will be available for sale each day? 1,750 Mark's salary $ Total fixed costs 2,195 Print Done Print Done
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