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Each morning, Mike Smith stocks the drink case at Mike's Beach Hut in Virginia Beach, Virginia. Mike's Beach Hut has 1 1 0 linear feet

Each morning, Mike Smith stocks the drink case at Mike's Beach Hut in Virginia Beach, Virginia. Mike's Beach Hut has 110 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 12-ounce cans or five 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.
What is the constraining factor at Mike's Beach Hut? What should Mike stock tomaximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day?
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?
Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day?
The beverage stand sells three types of cold drinks:
Grand - Cola in 12-0z. cans for $1.55 per can
Bottled water in 20- oz. plastic bottles for $1.80 per bottle
Value - Soda in 20-oz. glass bottles for $2.25 per bottle
Mike's Beach Hut pays its suppliers the following:
$0.25 per 12-oz. can of grand - cola
$0.35 per 20- z. bottle of bottled water
$0.70 per 20- oz. bottle of value - soda
Mike's Beach Hut's monthly fixed expenses include the following:
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