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i Data Table X Nathan's Beach Hut sells three types of cold drinks: 1. Yummy Time in 12-oz. cans for $1.35 per can 2. Yummy
i Data Table X Nathan's Beach Hut sells three types of cold drinks: 1. Yummy Time in 12-oz. cans for $1.35 per can 2. Yummy Time in 20-oz. bottles for $1.85 per bottle 3. Value - Soda in 20-oz. bottles for $2.25 per bottle Nathan's Beach Hut pays its suppliers: 1. $0.40 per 12-oz. can of Yummy Time 2. $0.50 per 20-oz. bottle of Yummy Time 3. $0.55 per 20-oz. bottle of Value - Soda Nathan's Beach Hut's monthly fixed costs include: Hut rental $ 350 Refrigerator rental 85 Nathan's salary 1,650 $ 2,085 Total fixed costs Print Done Question Help Each morning, Nathan Ivery stocks the drink case at Nathan's Beach Hut in Myrtle Beach, South Carolina. The drink case has 120 linear feet of refrigerated drink space. Each linear foot can hold either six 12-ounce cans or three 20-ounce bottles. (Click the icon to view the information on the cold drinks.) Nathan's Beach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. Requirement 1. What is Nathan's Beach Hut's constraining factor? What should Nathan stock to maximize profits? The constraining factor is What should Nathan stock to maximize profits? Complete the product mix analysis to determine which product would maximize Nathan's profits. Yummy Time Yummy Time Value-Soda 12 oz. Cans 20 oz. Bottles 20 oz. Bottles 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 Decision: Stock Requirement 2. Suppose Nathan's Beach Hut refuses to devote more than 85 linear feet to any individual product. Under this condition, how many linear feet of each drink should Nathan's stock? How many units of each product will be available for sale each day? (Abbreviation used: CM = contribution margin.) Nathan's Beach Hut should stock its shelves as follows: First stock CM per linear foot linear feet with the product that has the linear feet with the product that has the Next stock CM per linear foot How many units of each product will be available for sale each day based on the product mixed determined in the preceding step? (For entries with a $0 balance, make sure to enter "O" in the appropriate cell.) cans Yummy Time in 12 oz. cans: Yummy Time in 20 oz. bottles: bottles Value-Soda in 20 oz. bottles: bottles
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