Each morning, Mike Root stocks the drink case at Mike's Beach Hut in Charleston, South Carolina. Mike's Beach Hut has 120 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 Mike's Beach Hut? What should Mike stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is linear feet of shelf space . Mike's should stock the drink with the highest contribution margin. Complete the product mix analysis to determine which product would maximize Mike's profits. Mike's Beach Hut Product Mix Analysis right-cola energize-ade 20 oz. Bottles orange juice 20 oz. Bottles 12 oz. Cans 1.45 0.20 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 1.25 6 x The beverage stand sells three types of cold drinks: 1. Right - Cola in 12-oz. cans for $1.45 per can 2. Energize - Ade in 20-oz. plastic bottles for $1.85 per bottle 3. Orange juice in 20-oz. glass bottles for $2.30 per bottle Mike's Beach Hut pays its suppliers the following: 1. $0.20 per 12-oz. can of right - cola 2. $0.45 per 20-oz. bottle of energize - ade 3. $0.75 per 20-oz. bottle of orange juice Mike's Beach Hut's monthly fixed expenses include the following: $ 380 Hut rental... Refrigerator rental Mike's salary 75 1,700 $ 2,155 Total fixed expenses 1. What is the constraining factor at Mike's Beach Hut? What should Mike 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 Mike refuses to devote more than 75 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? 3. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day