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Each morning, Mike Imery stocks the drink case at Mike's Beach Hut in Virginia Beach, Virginia. Mike's Beach Hut has 115 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or three 20-ounce plastic or glass bottles. EEB (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 The beverage stand sells three types of cold drinks: 1. Right -Cola in 12-oz. cans for $1.60 per can 2. Energy Drink in 20-oz. plastic bottles for $1.85 per bottle 3. Orange juice in 20-oz. glass bottles for $2.25 per bottle Mike's Beach Hut pays its suppliers the following: 1. S0.25 per 12-oz. can of right -cola 2. $0.45 per 20-oz. bottle of energy drink 3. $0.65 per 20-oz. bottle of orange juice Mike's Beach Hut's monthly fixed expenses include the following 380 75 1,550 2,005 Refrigerator rental Mike's salary. Total fixed expenses $ Product Mix Analysis orange juice right-cola energy drink 12 oz. Cans 20 oz. Bottles 20 oz. Bottles 1.60 $ 0.25 1.35 1.85$ 0.45 1.40 Sales price per unit Variable cost per unit Contribution margin per unit Units per linear foot of shelf space Contribution margin per linear foot of shelf space Right-Cola 12-oz. cans right-cola 12-oz, cans 2.25 0.65 1.60 4.20 $ 6.75 $ 4.80 has the highest contribution margin per linear foot of shelf space. To maximize profits, Mike's should devote all its shelf space to Requirement 2. To provide variety to customers, suppose Mike refuses to devote more than 70 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? Show how Mike should stock his shelves, based on each product's contribution margin (CM) ist stock maximum contraint of-l JCM linear ft. with product having the linear ft. with product having the linear ft, with product having the Stock the remaining CM Requirement 2. To provide variety Under this condition, how many lin 0 Show how Mike should stock his s 1st stock maximum contraint of 70 Next minimum constraint of Stock the remaining 15 30 115 linea CM: linear ft. with product having the linear ft. with product having the linear ft. with product having the highest lowest middle then click Check Answer. CM CM CM: 12 oz. cans of right-cola 20 oz. bottles of energy drink 20 oz. bottles of orange juice