Each morning, Murry smith stocks the drink case at Murry's Beach Hut in Myrtle Beach, South Carolina. The drink case has 125 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles.

Data Table

Three types of cold drinks:

1. Grand-Cola in 12-oz cans for $1.50 per can

2.Grand-Cola in 20-oz bottles for $2.00 per bottle

3.Best-Cola in 20-oz bottles for $2.45 per bottle

Murry's pay its suppliers:

1.$0.35 per 12-oz can of Grand-Cola

2.$0.50 per 20-oz bottle of Grand-cola

3.$0.60 per 20-oz botle of Best-Cola

Murry's monthly fixed costs include:

Hut rental	$ 380
Refrigerator rental	75
Murry's salary	1,850
Total fixes costs	$2,305

Requirement 1. What is the constraining factor? _________a_____________

Complete the product mix analysis to determine which product would maximize Murry's profits.

Grand-Cola Grand-Cola Best-Cola

12-oz cans 20-oz bottles 20-oz Bottles

Sales price per unit	____________	__________	___________
Variable cost per unit
Contribution margin per unit
Units per linear foot of shelf space
Contribution margin per linear foot of shelf space

Decision: Stock ____________b____________

Requirement 2. Suppose Murry's Beach Hut refuses to devote more than 85 linear feet to any individual product. Under this condition, how many linear feet of each drink should Murry's stock? How many units of each product will be available for sale each day?

Murry's Beach Hut should stock shelves as follows:

First stock ____ linear feet with the product that has the ______ CM per linear foot

Next stock ____ linear feet with the product that has the ______ CM per linear foot

How many units of each product will be available for sale each day based on the product mixed determined in the preceding step?

Grand-Cola in 12-oz cans: _______________ cans

Grand-cola in 20-oz bottles: _______________ bottles

Best-Cola in 20-oz bottles: ________________ bottles

a. linear feet of shelf space or number of customers per day or number of Grand-cola cans or number of Grand-Cola bottles or number of Best-Cola bottles

b.an equal number of each product or all 12-oz cans of Grand-Cola or all 20-oz bottles of Grand-cola or all 20-oz bottles of Best-Cola