Question
Each morning, Ned stenback stocks the drink case at Ned's beach hut in Myrtle beach, South Carolina. The drink case has 85 linear feet of
Each morning, Ned stenback stocks the drink case at Ned's beach hut in Myrtle beach, South Carolina. The drink case has 85 linear feet of refrdigerated dirnk space. Each Linear foot can hold either seven 12-ounce cans or three 20-ounce bottles.
Data table:
Ned's beach Hut sells three types of cold drinks:
1. Every - Pop in 12 oz. cans for $1.30 per can
2. Every- Pop in 20 oz. bottles for $2.00 per bottle
3. pep - Cola in 20-oz bottles for $2.45 per bottle
Ned's Beach Hut pays its suppliers
1. $0.45 per 12-oz can of Every - Pop
2. $0.60 per 20-oz bottle of Every - Pop
3. $0.70 per 20-oz bottle of Pep - Cola
needs beach hut's monthly fixed costs include:
Hut rental $360
Refridgerator Rental $65
ned's salary $1650
Total fixed costs $2075
Requirement 1. What is ned's beach hut's constraining factor? What should ned stock to maximize profits?
Requirement 2. Suppose Ned's beach Hut refuses to devote mroe 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?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started