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Each morning, Ned Smith stocks the drink case at Ned's Beach Hut in Naples, Florida. Ned's Beach Hut has 125 linear feet of refrigerated display
Each morning, Ned Smith stocks the drink case at Ned's Beach Hut in Naples, Florida. Ned's Beach Hut has 125 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 12 -ounce cans or three 20-ounce plastic or glass bottles. View the information on the cold drinks. The beverage stand can sell all drinks stocked in the display case each morning. Read the requirements. 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 Ned's should stock the drink with the contribution margin. stock to maximiz ach day? k with the Requirements 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? 2. To provide variety to customers, suppose Ned refuses to devote more than 75 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? Each morning, Ned Smith stocks the drink case at Ned's Beach Hut in Naples, Florida. Ned's Beach Hut has 125 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 12 -ounce cans or three 20-ounce plastic or glass bottles. View the information on the cold drinks. The beverage stand can sell all drinks stocked in the display case each morning. Read the requirements. 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 Ned's should stock the drink with the contribution margin. stock to maximiz ach day? k with the Requirements 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? 2. To provide variety to customers, suppose Ned refuses to devote more than 75 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
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