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Each morning, Ned Ivery stocks the drink case at Ned's Beach Hut in Myrtle Beach, South Carolina. The drink case has 95 linear feet of

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Each morning, Ned Ivery stocks the drink case at Ned's Beach Hut in Myrtle Beach, South Carolina. The drink case has 95 linear feet of refrigerated drink space. Each linear foot can hold either six 12-ounce cans or three 20-ounce bottles. E (Click the icon to view the information on the cold drinks.) Ned's Beach Hut can sell all the drinks stocked in the display case each morning. Read the requirements Requirement 1. What is Ned's Beach Hut's constraining factor? What should Ned stock to maximize profits? The constraining factor is What should Ned stock to maximize profits? Complete the product mix analysis to determine which product would maximize Ned's profits. Grand-Cola Grand-Cola Pretty Pop 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 Requirement 2. Suppose Ned's Beach Hut refuses to devote more than 55 linear feet to any individual product. Under this condition, how many linear feet of each drink should Ned's stock? How many units of each product will be available for sale each day? Abbreviation used: CM = contribution margin.) Ned's Beach Hut should stock its shelves as follows: First stocklinear feet with the product that has theCM per linear foot Next stockinear feet with the product that has theCM 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? (For entries with a so balance, make sure to enter "O" in the appropriate cell.) Units for sale Grand-Cola in 12 oz. cans: Grand-Cola in 20 oz. bottles: Pretty Pop in 20 oz. bottles: cans bottles bottles Ned's Beach Hut sells three types of cold drinks: 1. Grand- Cola in 12-oz. cans for $1.35 per can 2. Grand -Cola in 20-oz. bottles for $1.85 per bottle 3. Pretty Pop in 20-oz. bottles for $2.30 per bottle Ned's Beach Hut pays its suppliers: 1. $0.25 per 12-oz. can of Grand -Cola 2. $0.40 per 20-oz. bottle of Grand - Cola 3. $0.60 per 20-oz. bottle of Pretty Pop Ned's Beach Hut's monthly fixed costs include: Hut rental Refrigerator rental Ned's salary Total fixed costs 355 65 1,750 $2,170

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