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Each morning, Nathan Stenback stocks the drink case at Nathan's Beach Hut in Daytona Beach, Florida, Nathan's Beach Hut has 1 2 0 linear feet

Each morning, Nathan Stenback stocks the drink case at Nathan's Beach Hut in Daytona Beach, Florida, Nathan's Beach Hut has 120 linear feet of reffigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or three 20-ounce plastic or glass bottles.The beverage stand can sell all drinks stocked in the display case each morning.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?2. To provide variety to customers, suppose Nathan refuses to devote more than75 linear feet and no less than 15 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?Information on the cold drinksSales price per unitThe beverage stand sells three types of cold drinks:1. Grand - Cola in 12-oz. cans for $1.55 per can2. Bottled water in 20-oz. plastic bottles for $1.65 per br3. Tobe - Cola in 20-oz. glass bottles for $2.25 per bottlNathan's Beach Hut pays its suppliers the following:1. $0.25 per 12-oz. can of grand - cola2. $0.45 per 20-oz. bottle of bottled water3. $0.75 per 20-oz. bottle of tobe - colaNathan's Beach Hut's monthly fixed expenses include the followilHut rental ..Refrigerator rental$370601,850 Nathan's salary$2,280Requirement 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 linear feet of shelf space. Nathan's should stock the drink with the highest contribution margin.

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