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Each morning, Max Kyler stocks the drink case at Max's Beach Hut in Naples, Florida, Max's Beach Hut has 105 inear feet of refrigerated display

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Each morning, Max Kyler stocks the drink case at Max's Beach Hut in Naples, Florida, Max's Beach Hut has 105 inear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12 ounce cans or fout 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 Max's Beach Hur? What should Max stock to maximize profits? What is the maximum contribution maron he could generate from refrigerated drinks each day? The constraining factor is Max's should stock the drink with the contribution margin x ht i Data Table The beverage stand sells three types of cold drinks: 1. Grand - Cola in 12-oz. cans for $1.40 per can 2. Organic - Ade in 20-oz. plastic bottles for $1.70 per bottle 3. Orange juice in 20-oz. glass bottles for $2.25 per bottle Max's Beach Hut pays its suppliers the following: 1. $0.15 per 12-oz. can of grand-cola 2. $0.30 per 20-oz. bottle of organic - ade 3. $0.80 per 20-oz. bottle of orange juice Max's Beach Hut's monthly fixed expenses include the following: 370 85 Hut rental...... $ Refrigerator rental ...... Max's salary $ Total fixed expenses 1,650 2,105 . ch Print Done i Requirements 1. What is the constraining factor at Max's Beach Hut? What should Max 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 Max refuses to devote more than 65 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? Print Done

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