Each morning, Max Kranton stocks the drink case at Max's Beach Hut in Myrtle Beach, South...
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Each morning, Max Kranton stocks the drink case at Max'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 seven 12-ounce cans or five 20-ounce bottles (Click the icon to view the information on the cold drinks) Max's Beach Hut can sell all the drinks stocked in the display case each morning Read the Gourament Data table Max's Beach Hut sells three types of cold drinks: 1. Right-Cola in 12-oz. cans for $1.45 per can 2. Right-Cola in 20-oz. bottles for $1.70 per bottle 3. ToBe in 20-oz. bottles for $2.20 per bottle Max's Beach Hut pays its suppliers: 1. $0.20 per 12-oz. can of Right-Cola 2. $0.40 per 20-oz. bottle of Right-Cola 3. $0.85 per 20-oz. bottle of ToBe Max's Beach Hut's monthly fixed costs include: Hut rental Refrigerator rental $ 69 340 70 Max's salary 1,650 $ 2,060 Total fixed costs Requirements 1. What is Max's Beach Hut's constraining factor? What should Max stock to maximize profits? 2. Suppose Max'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 Max's stock? How many units of each product will be available for sale each day? Requirement 1. What is Max's Beach Huts constraining factor? What should Max stock to maximize profits? The constraining factor is linear feet of shelf space What should Max stock to maximize profits? Complete the product mix analysis to determine which product would maximize Max's profits. Sales price per unit Variable cost per unit Contribution margin per unit Units per linear foot of shelf space Contribution margin per linear foot of shelf space Right-Cola Right-Cola ToBe 12 oz. Cans 20 oz. Bottles 20 oz. Bottles Each morning, Max Kranton stocks the drink case at Max'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 seven 12-ounce cans or five 20-ounce bottles (Click the icon to view the information on the cold drinks) Max's Beach Hut can sell all the drinks stocked in the display case each morning Read the Gourament Data table Max's Beach Hut sells three types of cold drinks: 1. Right-Cola in 12-oz. cans for $1.45 per can 2. Right-Cola in 20-oz. bottles for $1.70 per bottle 3. ToBe in 20-oz. bottles for $2.20 per bottle Max's Beach Hut pays its suppliers: 1. $0.20 per 12-oz. can of Right-Cola 2. $0.40 per 20-oz. bottle of Right-Cola 3. $0.85 per 20-oz. bottle of ToBe Max's Beach Hut's monthly fixed costs include: Hut rental Refrigerator rental $ 69 340 70 Max's salary 1,650 $ 2,060 Total fixed costs Requirements 1. What is Max's Beach Hut's constraining factor? What should Max stock to maximize profits? 2. Suppose Max'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 Max's stock? How many units of each product will be available for sale each day? Requirement 1. What is Max's Beach Huts constraining factor? What should Max stock to maximize profits? The constraining factor is linear feet of shelf space What should Max stock to maximize profits? Complete the product mix analysis to determine which product would maximize Max's profits. Sales price per unit Variable cost per unit Contribution margin per unit Units per linear foot of shelf space Contribution margin per linear foot of shelf space Right-Cola Right-Cola ToBe 12 oz. Cans 20 oz. Bottles 20 oz. Bottles
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Horngrens Accounting
ISBN: 978-0134674681
12th edition
Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura
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