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Each morning, Mike Stenback stocks the drink case at Mike's Beach Hut in Charleston, South Carolina. Mike's Beach Hut has 110 linear feet of refrigerated

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Each morning, Mike Stenback stocks the drink case at Mike's Beach Hut in Charleston, South Carolina. Mike's Beach Hut has 110 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. Read the reguirements. The beverage stand sells three types of cold drinks: 1. Cola - Cola in 12-oz. cans for $1.55 per can 2. Root Beer in 20-oz. plastic bottles for $1.75 per bottle 3. Orange Soda in 20-oz. glass bottles for $2.30 per bottle Mike's Beach Hut pays its suppliers the following: 1. $0.10 per 120z. can of cola - cola 2. $0.40 per 20-oz. bottle of root beer 3. $0.75 per 20-oz. bottle of orange soda Mike's Beach Hut's monthly fixed expenses include the following: 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 70 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? 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 Mike's should stock the drink with the contribution

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