Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Each morning, Murry Cole stocks the drink case at Murry's Beach Hut in Newark, New Jersey. Murry's Beach Hut has 120 linear feet of refrigerated

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Each morning, Murry Cole stocks the drink case at Murry's Beach Hut in Newark, New Jersey. Murry's Beach Hut has 120 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or three 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 has the highest contribution margin per linear foot of shelf space. To maximize profits, Murry's should devote all its shelf space to (Round your answer to the nearest whole dollar) The maximum contribution margin that Murry could generate oach day from refrigerated drinks is $ Requirement 2. To provide variety to customers, suppose Murry refuses to devote more than 70 linear feet and no less than 20 linear feet to any individual product. Under this condition, how many linear foot of each drink should be stocked? How many units of each product will be available for sale each day? Show how Murry 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 linear ft. with product having the CM Stock the remaining linear ft with product having the C M: Now calculate the units available for sale based on the product mix determined above. Units for sale right-cola in 12 oz. cana: cans Each morning, Murry Cole stocks the drink case at Murry's Beach Hut in Newark, New Jersey. Murry's Beach Hut has 120 linear foot of refrigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or three 20-ounce plastic or glass bottles. 1: (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 TESCO J d IL WILT OLULT TUM Stock the remaining linear ft with product having the : Now calculate the units available for sale based on the product mix determined above Units for sale cans right-cola in 12 oz. cans: energy drink in 20 oz. bottles: orange juice in 20 oz. bottles: bottles bottles Requirement 3. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day? (Round your answers to the nearest whole dollar.) Contribution Margin right-cola in 12 oz. cans: energy drink in 20 oz. bottles: orange juice in 20 oz. bottles: Total ning. Murry Cole stocks the drink case at Murry's Beach Hut in Newark, New Jersey. Murry's Beach Hut has 120 linear feet of refrigerated display space for 1. Each linear foot can hold either five 12-ounce cans or three 20-ounce plastic or glass bottles. the icon to view the informal age stand can sell all drinks Data Table requirements ILUL remaining The beverage stand sells three types of cold drinks: 1. Right-Cola in 12-oz. cans for $1.50 per can late the units available for s 2. Energy Drink in 20-oz. plastic bottles for $1.75 per bottle 3. Orange juice in 20-oz. glass bottles for $2.30 per bottle Murry's Beach Hut pays its suppliers the following: in 12 oz. cans: 1. $0.15 per 12-oz. can of right-cola 2. $0.30 per 20-oz. bottle of energy drink nk in 20 oz. bottles: 3. $0.80 per 20-oz. bottle of orange juice be in 20 oz. bottles: Murry's Beach Hut's monthly fixed expenses include the following: went 3. Assuming the produd Hut rental 360 ted drinks each day? (Round your the nearest whole dollar) Refrigerator rental ............... Murry's salary... 1,450 . in 12 oz. cans: 1,875 ink in 20 oz. bottles: 65 Total fixed expenses ice in 20 oz. bottles: Print Done em any list or enter any number in the input fields and then continue to the next question. Each morning, Murry Cole stocks the drink case at Murry's Beach Hut in Newark, New Jersey. Murry's Beach Hut has 120 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or three 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 has the highest contribution margin per linear foot of shelf space. To maximize profits, Murry's should devote all its shelf space to (Round your answer to the nearest whole dollar) The maximum contribution margin that Murry could generate oach day from refrigerated drinks is $ Requirement 2. To provide variety to customers, suppose Murry refuses to devote more than 70 linear feet and no less than 20 linear feet to any individual product. Under this condition, how many linear foot of each drink should be stocked? How many units of each product will be available for sale each day? Show how Murry 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 linear ft. with product having the CM Stock the remaining linear ft with product having the C M: Now calculate the units available for sale based on the product mix determined above. Units for sale right-cola in 12 oz. cana: cans Each morning, Murry Cole stocks the drink case at Murry's Beach Hut in Newark, New Jersey. Murry's Beach Hut has 120 linear foot of refrigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or three 20-ounce plastic or glass bottles. 1: (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 TESCO J d IL WILT OLULT TUM Stock the remaining linear ft with product having the : Now calculate the units available for sale based on the product mix determined above Units for sale cans right-cola in 12 oz. cans: energy drink in 20 oz. bottles: orange juice in 20 oz. bottles: bottles bottles Requirement 3. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day? (Round your answers to the nearest whole dollar.) Contribution Margin right-cola in 12 oz. cans: energy drink in 20 oz. bottles: orange juice in 20 oz. bottles: Total ning. Murry Cole stocks the drink case at Murry's Beach Hut in Newark, New Jersey. Murry's Beach Hut has 120 linear feet of refrigerated display space for 1. Each linear foot can hold either five 12-ounce cans or three 20-ounce plastic or glass bottles. the icon to view the informal age stand can sell all drinks Data Table requirements ILUL remaining The beverage stand sells three types of cold drinks: 1. Right-Cola in 12-oz. cans for $1.50 per can late the units available for s 2. Energy Drink in 20-oz. plastic bottles for $1.75 per bottle 3. Orange juice in 20-oz. glass bottles for $2.30 per bottle Murry's Beach Hut pays its suppliers the following: in 12 oz. cans: 1. $0.15 per 12-oz. can of right-cola 2. $0.30 per 20-oz. bottle of energy drink nk in 20 oz. bottles: 3. $0.80 per 20-oz. bottle of orange juice be in 20 oz. bottles: Murry's Beach Hut's monthly fixed expenses include the following: went 3. Assuming the produd Hut rental 360 ted drinks each day? (Round your the nearest whole dollar) Refrigerator rental ............... Murry's salary... 1,450 . in 12 oz. cans: 1,875 ink in 20 oz. bottles: 65 Total fixed expenses ice in 20 oz. bottles: Print Done em any list or enter any number in the input fields and then continue to the next

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan

15th edition

978-0133428858, 133428850, 133428702, 978-0133428704

More Books

Students also viewed these Accounting questions