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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 linear feet of reffigerated display space for cold drinks. Each linear foot can hold either five ounce cans or three ounce plastic or glass bottles.The beverage stand can sell all drinks stocked in the display case each morning 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? To provide variety to customers, suppose Nathan refuses to devote more than linear feet and no less than 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?Assuming the product mix calculated in Requirement 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: Grand Cola in oz cans for $ per can Bottled water in oz plastic bottles for $ per br Tobe Cola in oz glass bottles for $ per bottlNathan's Beach Hut pays its suppliers the following: $ per oz can of grand cola $ per oz bottle of bottled water $ per oz bottle of tobe colaNathan's Beach Hut's monthly fixed expenses include the followilHut rental Refrigerator rental$ Nathan's salary$Requirement 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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