Each morning, Max Mcknight stocks the drink case at Max's Beach Hut in Grand Isle, Louisiana. Max's Beach Hut has 130 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 12-ounce cans or four 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 Hut? What should Max stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? Max's should stock the drink with the The constraining factor is contribution margin. 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 70 linear feet and no less than 20 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? The beverage stand sells three types of cold drinks: 1. Just - Cola in 12-oz. cans for $1.50 per can 2. Energize - Ade in 20-oz. plastic bottles for $1.70 per bottle 3. Best - Cola in 20-oz. glass bottles for $2.15 per bottle Max's Beach Hut pays its suppliers the following: 1. $0.25 per 12-oz. can of just - cola 2. $0.35 per 20-oz. bottle of energize-ade 3. $0.70 per 20-oz. bottle of best - cola Max's Beach Hut's monthly fixed expenses include the following: Hut rental 360 Refrigerator rental 65 1,700 Max's salary $ Total fixed expenses 2,125