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Each morning, Max Preston stocks the drink case at Max's Beach Hut in Charleston, South Carolina. Max's Beach Hut has 105 linear feet of refrigerated
Each morning, Max Preston stocks the drink case at Max's Beach Hut in Charleston, South Carolina. Max's Beach Hut has 105 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 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 generate from refrigerate The constraining factor i Complete the product m Data table The beverage stand sells three types of cold drinks 1. Just-Cola in 12-oz cans for $1.50 per can 2. Bottled water in 20-oz. plastic bottles for $1.65 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. $0.20 per 12-oz can of just-cola 2. $0.45 per 20-oz bottle of bottled water 3. $0.75 per 20-oz bottle of best-cola Max's Beach Hut's monthly fixed expenses include the following Hut rental S 380 Refrigerator rental 80 1,600 Max's salary $ 2,060 Total fixed expenses Print Done e maximum contribution margin he could in hould devote all its shelf space to (Round your answer to t The maximum contribution margin that Max could generate each day from refrigerated drinks is Requirement 2. To provide variety to customers, suppose Max refuses to devote more than 60 linear feet and no less than 5 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? Show how Max should stock his shelves based on each product's contribution maroin (CM) 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? The constraining factor is Max's should stock the drink with the contribution margin Complete the product mix analysis to determine which product would maximize Max's profits. Max's Beach Hut Product Mix Analysis just-cola bottled water 12 oz. Cans 20 oz. Bottles best-cola 20 oz. Bottles has the highest contribution margin per linear foot of shelf space. To maximize profits, Max's should devote all its shelf space to (Round your answer to the nearest whole dollar) The maximum contribution margin that Max could generate each day from refrigerated drinks is Requirement 2. To provide variety to customers, suppose Max uses to devote more than 60 linear feet and no less than 5 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? Show how Max should stock his shelves, based on each product's contribution margin (CM) 1st stock maximum contraint of Next minimum constraint of Stock the remaining linear ft with product having the linear ft with product having the linear ft with product having the CM CM CM. has the highest contribution margin per linear foot of shelf space. To maximize profits, Max's should devote all its shell space to (Round your answer to the nearest whole dollar) The maximum contribution margin that Max could generate each day from refrigerated drinks is Requirement 2. To provide variety to customers, suppose Max refuses to devote more than 60 linear feet and no less than 5 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? Show how Max should stock his shelves, based on each product's contribution margin (CM): 1st stock maximum contraint of linear ft with product having the CM: Next minimum constraint of linear ft. with product having the CM: Stock the remaining linear ft. with product having the CM Now calculate the units available for sale based on the product mix determined above. Units for sale just-cola in 12 oz cans: bottled water in 20 oz. bottles: best-cola in 20 oz. bottles: cans bottles bottles Requirement 3. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day? (Round your answers to the nearest whole dollar) Contribution Margin just-cola in 12 oz cans: bottled water in 20 oz bottles best-cola in 20 oz. bottles: Total
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