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+ Each morning, Max White stocks the drink case at Max's Beach Hut in Myrtle Beach, South Carolina. The drink case has 120 linear feet
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Each morning, Max White stocks the drink case at Max's Beach Hut in Myrtle Beach, South Carolina. The drink case has 120 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 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 requirements Requirement 1. What is Max's Beach Hut's constraining factor? What should Max stock to maximize profits? The constraining factor is linear feet of shelf space Data table What should Max stock to maximize profits? Complete the product mix analysis to determine which product would maximize Max's profits. To Be ToBe Energy Ade 20 oz. Bottles 12 oz. Cans 20 oz. Bottles Sales price per unit Variable cost per unit Contribution margin per unit Max's Beach Hut sells three types of cold drinks: 1. ToBe in 12-oz. cans for $1.35 per can 2. ToBe in 20-oz. bottles for $1.70 per bottle 3. Energy - Ade in 20-oz. bottles for $2.40 per bottle Max's Beach Hut pays its suppliers: 1. $0.10 per 12-oz. can of ToBe 2. $0.35 per 20-oz. bottle of ToBe 3. $0.55 per 20-oz. bottle of Energy - Ade Max's Beach Hut's monthly fixed costs include: Hut rental $ 390 Refrigerator rental 80 Max's salary 1,450 $ 1,920 Total fixed costs Units per linear foot of shelf space Contribution margin per linear foot of shelf space Requirements Print Done 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 80 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 dayStep by Step Solution
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