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Each morning, Mike Rouse stocks the drink case at Mike's Beach Hut in Virginia Beach, Virginia. Mike's Beach Hut has 1 0 5 linear feet
Each morning, Mike Rouse stocks the drink case at Mike's Beach Hut in Virginia Beach, Virginia. Mike's Beach Hut has linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five ounce cans or four 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.
Requirement To provide variety to customers, suppose Mike refuses to devote more than linear feet and no less than line linear feet of each drink should be stocked? How many units of each product will be available for sale each day?
Show how Mike should stock his shelves, based on each product's contribution margin CM:
st stock maximum contraint of linear ft with product having the :
Next minimum constraint of linear with product having the :
Stock the remaining linear with product having the :
Now calculate the units available for sale based on the product mix determined above.
tableUnits for salecolacola in oz cans:,cansenergizeade in oz bottles:,bottlesbestcola in oz bottles:,bottles
Requirement Assuming the product mix calculated in Requirement what contribution margin will be generated from refriger whole dollar.
Contribution Margin
tablecolacola in oz cans:,Contribution Marginenergizeade in oz bottles:,bestcola in oz bottles:,Total
Data table
The beverage stand sells three types of cold drinks:
Cola Cola in cans for $ per can
Energize Ade in oz plastic bottles for $ per bottle
Best Cola in oz glass bottles for $ per bottle
Mike's Beach Hut pays its suppliers the following:
$ per can of cola cola
$ per oz bottle of energize ade
$ per bottle of best cola
Mike's Beach Hut's monthly fixed expenses include the following:
tableHut rental. $Refrigerator rental,,Mikes sala,,Total fixed expenses,$
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