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Each morning, Ned Rouse stocks the drink case at Ned's Beach Hut in Myrtle Beach, South Carolina. The drink case has 95 linear feet
Each morning, Ned Rouse 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 (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 Data table Requirement 1. What is Ned's Beach Hut's constraining factor? What should Ned stock to maximize profits? Ned's Beach Hut sells three types of cold drinks 1. ToBe in 12-oz cans for $1.45 per can 2. ToBe in 20-oz bottles for $1.65 per bottle 3. Right-Cola in 20 oz bottles for $2.35 per bottle Ned's Beach Hut pays its suppliers 1. $0.45 per 12-az. can of ToBe 2. $0 60 per 20-oz bottle of ToBe Requirements 1. What is Ned's Beach Hut's constraining factor? What should Ned stock to maximize profits? 2. Suppose Ned's Beach Hut refuses to devote more than 65 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? 3. $0.75 per 20 oz bottle of Right-Cola Ned's Beach Hut's monthly fixed costs include Hut rental Refrigerator rental Ned's salary Total fixed costs $ 365 60 1,550 1.975
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Answer 1 Neds Beach Huts constraining factor is the limited linear feet of refrigerated drink space in the display case which is 95 linear feet To max...Get Instant Access to Expert-Tailored Solutions
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