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Each morning, Nick Rouse stocks the drink case at Nick's Beach Hut in Daytona Beach, Florida. Nick's Beach Hut has 110 linear feet of refrigerated
Each morning, Nick Rouse stocks the drink case at Nick's Beach Hut in Daytona Beach, Florida. Nick's Beach Hut has 110 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 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 Requirement 1. What is the constraining factor at Nick's Beach Hut? What should Nick stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is contribution margin. Nick's should stock the drink with the Data Table Requirements fre The beverage stand sells three types of cold drinks: 1. Right-Cola in 12-oz. cans for $1.40 per can 2. Bottled water in 20-oz. plastic bottles for $1.80 per bottle 3. Orange Soda in 20-oz. glass bottles for $2.15 per bottle Nick's Beach Hut pays its suppliers the following: 1. $0.20 per 12-oz. can of right-cola 2. $0.35 per 20-oz. bottle of bottled water 3. $0.65 per 20-oz. bottle of orange soda Nick's Beach Hut's monthly fixed expenses include the following: 1. What is the constraining factor at Nick's Beach Hut? What should Nick 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 Nick refuses to devote more than 60 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? 360 Hut rental Refrigerator rental Print Done 85 1,750 Nick's salary 2,195 Total fixed expenses $ 2,195
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