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Each morning, Nathan Imery stocks the drink case at Nathan's Beach Hut in Newark, New Jersey, Nathan's Beach Hut has 105 Inear feet of
Each morning, Nathan Imery stocks the drink case at Nathan's Beach Hut in Newark, New Jersey, Nathan's Beach Hut has 105 Inear 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. the icon to view the information on the cold) The beverage stand can sel all drinks stocked in the display case each morning Read the requirements Requirement 1. What is the constraining factor at Nathan's Beach Hut? What should Nathan stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is Nathan's should stock the drink with the contribution margin Data table The beverage stand sells three types of cold drinks: Requirements 1. What is the constraining factor at Nathan's Beach Hu? What should Nathan stock to mimize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? 2. To provide variety to customers, suppose Nathan refuses to devote more than 65 Inear feet and no less than 10 linear feet to any individual product. Under this condson, 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 wil be generated from refrigerated drinks each day? 1. Tele-Cola in 12-oz. cans for $1.45 per can 2. Organic-Ade in 20-ar plastic bottes for $1.80 per bote 3. Orange juice in 20-or gass bottles for $2.25 per bo Nathan's Beach Hut pays its suppliers the following: 1.50.20 per 12-oz. can of tobe-cola 2. 50.45 per 20-az. bottle of organic-ade 3.50.70 per 20-az bele of orange j Nathan's Beach Huf's monthly fixed expenses include the following: Hental Refrigerator rental 375 85 1,750 Nathan's salary 2210 Tola ad expenses Print Done
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