Each morning, Ned Root stocks the drink case at Ned's Beach Hut in Virginia Beach, Virginia. Ned's Beach Hut has 120 linear 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. (Click the icon to view the information on the cold drinks.) The beverage stand can sell all drinks stocked in the display case each morning. Read the requirements. Requirements C Requirement 1. What is the constraining factor at Ned's Beach Hut? What should Ned 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 Ned's should stock the drink with the highest contribution margin. Complete the product mix analysis to determine which product would maximize Ned's profits. Ned's Beach Hut Product Mix Analysis 1. What is the constraining factor at Ned's Beach Hut? What should Ned stock to maximize profits? What the maximum contribution margin he could generate from refrigerated drinks each day? 2. To provide variety to customers, suppose Ned refuses to devote more than 70 linear feet and no less than 10 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? tobe-cola energize-ade best-cola 12 oz. Cans 20 oz. Bottles 20 oz. Bottles Data table The beverage stand sells three types of cold drinks: 1. ToBe-Cola in 12-oz. cans for $1.40 per can 2. Energize - Ade in 20-oz. plastic bottles for $1.70 per bottle 3. Best-Cola in 20-oz. glass bottles for $2.20 per bottle Ned's Beach Hut pays its suppliers the following: 1. $0.25 per 12-oz. can of tobe-cola 2. $0.40 per 20-oz. bottle of energize - ade 3. $0.80 per 20-oz. bottle of best-cola Ned's Beach Hut's monthly fixed expenses include the following: Hut rental Refrigerator rental $ 380 85 1,650 Ned's salary. $ 2,115 Total fixed expenses....: Print Done - X Print Done - X