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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

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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 105 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 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.
Requirement 2. To provide variety to customers, suppose Mike refuses to devote more than 70 linear feet and no less than 5 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):
1st stock maximum contraint of linear ft. with product having the CM:
Next minimum constraint of q, 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.
\table[[,Units for sale],[cola-cola in 12 oz. cans:,cans],[energize-ade in 20 oz. bottles:,bottles],[best-cola in 20 oz. bottles:,bottles]]
Requirement 3. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refriger whole dollar.)
Contribution Margin
\table[[cola-cola in 12 oz. cans:,Contribution Margin],[energize-ade in 20 oz. bottles:,],[best-cola in 20 oz. bottles:,],[Total,]]
Data table
The beverage stand sells three types of cold drinks:
Cola - Cola in 12-0z. cans for $1.45 per can
Energize - Ade in 20-oz. plastic bottles for $1.70 per bottle
Best - Cola in 20-oz. glass bottles for $2.30 per bottle
Mike's Beach Hut pays its suppliers the following:
$0.20 per 12-0z. can of cola - cola
$0.40 per 20- oz. bottle of energize - ade
$0.80 per 20-0z. bottle of best - cola
Mike's Beach Hut's monthly fixed expenses include the following:
\table[[Hut rental. ............,$,370],[Refrigerator rental,,75],[Mike's sala,,1,400],[Total fixed expenses,$,1,845]]
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