Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

homework: Chapter 8 Homework (required) core: 0.05 of 1 pt * E8-26A (similar to) 10 of 10 (5 completo) Each morning, Larry Stenback stocks the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
homework: Chapter 8 Homework (required) core: 0.05 of 1 pt * E8-26A (similar to) 10 of 10 (5 completo) Each morning, Larry Stenback stocks the drink case at Larry's Beach Hut in Myrtle Beach, South Carolina. Larry's Beach Hut has 116 linear feet of refrigerated display our 20-ounce plastic or glass bottles. III (Click the icon to view the information on the cold drinks.) The beverage stand can sell all drinks stocked in the display caso each morning Read the requirements Requirement 1. What is the constraining factor at Larry's Beach Hut? What should Larry stock to maximize profits? What is the maximum contribution margin The constraining factor is linear feet of shelf space Larry's should stock the drink with the highest contribution margin Complete the product mix analysis to determine which product would maximize Larry's profits. Larry's Beach Hut Product Mix Analysis ol cola.com e nergize-ade 12 oz. Cans 20 oz. Bottles orange soda 20 oz. Bottles 11 III . TILL hoose from any list or enter any number in the input fields and then click Check Answer. HW Score: 38.34%, 3.83 of 10 pts Question Help South Carolina. Larry's Beach Hut has 115 linear feet of refrigerated display space for cold drinks. Each lineer foot can hold either five 12 ounce Cons of cock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? with the highest contribution margin. energize-ade 20 oz. Bottles orange soda 20 oz. Bottles Check Answer i Data Table Hut? What ry's should st would maximi Beach Hut Mix Analysis cola- 12 oz. The beverage stand sells three types of cold drinks: 1. Cola-Cola in 12-oz. cans for $1.55 per can 2. Energize - Ade in 20-oz. plastic bottles for $1.65 per bottle 3. Orange Soda in 20-oz. glass bottles for $2.15 per bottle Larry's Beach Hut pays its suppliers the following: 1. $0.15 per 12-oz. can of cola - cola 2. $0.45 per 20-oz. bottle of energize - ade 3. $0.65 per 20-oz. bottle of orange soda Larry's Beach Hut's monthly fixed expenses include the following: Hut rental Refrigerator rental 1,550 Larry's salary 2,005 Total fixed expenses Print Done at should lamustack to maximize profits 2 What is the maximum.contribution marin he could operate 0 Requirements 1. What is the constraining factor at Larry's Beach Hut? What should Larry 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 Larry refuses to devote more than 70 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? Print Print Done Done

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions