Eachmorning, Max Imery stocks the drink case atMax's Beach Hut intheMuskokas. Max's Beach Hut has33 linear metres of refrigerated display space for cold drinks. Each linear metre can hold either18
341-mL cans or12 551-mL plastic or glass bottles.
Cold drinks information Max's Beach Hut sells three types of cold drinks: 1. Coca-Cola in 341-ml cans for $1.50 per can 2. A & W Root Beer in 551-ml plastic bottles for $1.75 per bottle 3. Mountain Dew in 551-mL glass bottles for $2.20 per bottle Max's Beach Hut pays its suppliers the following: 1. $0.25 per 341-ml can of Coca-Cola 2. $0.40 per 551-ml bottle of A & W Root Beer 3. $0.75 per 551-ml bottle of Mountain Dew Max's Beach Hut's monthly fixed expenses include the following: Hut rental . .. $ 375 Refrigerator rental . . 75 1,550 Max's salary . . . .. Total fixed expenses 2.000How many units of each product will be available for sale each day? Now calculate the units available for sale based on the product mix determined above. Units for sale Coca-Cola in 341-ml cans: cans A & W Root Beer in 551-mL bottles: bottles Mountain Dew in 551-mL bottles: bottlesRequirement 3. Assuming the product mix calculated in Requirement 2, what contribution margin will Ma): generate each day? {Round your interim calculations and nal answers to the nearest whole dollar.) Contribution Margin Coca-Cola in 341mL cans: A3. W Root Beer in 551rnL bottles: Mountain Dew in 551mL homes: Total (... Requirement 1. What is Max's Beach Hut's constraining factor? What should Ma): stock to maximize prots? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is V Max's should stock the drink with the E contribution margin. What should Max stock to maximize prots? Complete the product mix analysis to determine which product would maximize Mars profits. [Round your answers to the nearest cent} Product Mix Analysis 551 mL Bottles CocaCola A & W Root Beer 341mL Cans 551 mL Bottles 1 | | | lx:lx:lx|: Max's Beach Hut Mountain Dew V has the highest contribution margin per linear metre of sheii space. To maximize profits, Max's should devote all its shelf space to T The maximum contribution margin that Max could generate each dag;r from refrigerated drinks is $|:. [Round your answer to the nearest whole dollar.} Requirement 2. To provide variety to customers, suppose Max refuses to devote more than 20 linear metres and no fewer than 3 linear metres to any individual product. Under this condition, how many linear metres of each drink should Max stock? How many units of each product will be available for sale each day? Max refuses to devote more than 20 linear metres and no less than 3 linear metres to any individual product Show how Max should stock his shelves, based on each product's contribution margin {CM}: 'lst stock maximum contraint of _ linear m with product having the CM: Next minimum constraint of _ linear m with product having the CM: Stock the remaining _ linear m with product having the CM
