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Each morring. Nathan Preston stocks the drink onse at Nathan's Beach Hut in Virginia Beach, Virginia. Nathan's Beach Hut has 110 linear feet of redrigerabed

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Each morring. Nathan Preston stocks the drink onse at Nathan's Beach Hut in Virginia Beach, Virginia. Nathan's Beach Hut has 110 linear feet of redrigerabed daplay spece for cold. drinks. Each linear foot can hold either six 12 -ounce cans or three 20 -ounce plastic or glass bottfes. (Click the loon to view the information on the cold drinks.) The beverage stand can sell all drinks stocked in the display oase each moming. Read the requements. Requirement 1. What is the constraining factor at Nathan's Beach Hut? What should Nathan ntock to maximize profita? What is the maximum contribvtion maryin he coild generaso from refrigerated drinks ench day? The constraining factor is Nazhan's should atock the drink with the contribution margin. Data table The beverage stand sells three types of cold drinks: 1. Cola - Cola in 12-oz. cans for $1.60 per can 2. Organic - Ade in 20 -oz. plastic bottles for $1.65 per bottle 3. Value - Soda in 20-oz. glass bottles for $2.10 per bottle Nathan's Beach Hut pays its suppliers the following: 1. $0.25 per 12-oz. can of cola - cola 2. $0.35 per 20-oz. bottle of organic - ade 3. $0.65 per 20-oz. bottle of value - soda Nathan's Beach Hut's monthly fixed expenses include the following: Requirements 1. What is the constraining factor at Nathan's Beach Hut? What should Nathan 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 Nathan refuses to devote more than 60 linear feet and no less than 5 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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