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I need the calculation details on how to get these results. specially Units per linear foot of shelf space. how to get 5, 4 and
I need the calculation details on how to get these results. specially Units per linear foot of shelf space. how to get 5, 4 and 4.
Each morning, Murry Stenback stocks the drink case at Murry's Beach Hut in Long Beach, California. Murry's Beach Hut has 135 display space for cold drinks. Each linear foot can hold either five 12-ounce cans or four 20-ounce plastic or glass bottles. (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. Read the requirements Requirement 1. What is the constraining factor at Murry's Beach Hut? What should Murry stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? . Murry's should stock the drink with the highest contribution The constraining factor is linear feet of shelf space margin. Complete the product mix analysis to determine which product would maximize Murry's profits. Murry's Beach Hut Product Mix Analysis right-cola 12 oz. Cans 1.60 0.25 energize-ade 20 oz. Bottles 1.65 0.45 best-cola 20 oz. Bottles 2.30 0.65 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 1.35 1.65 6 75 S 4.80 4.80 $ 6.60 Right-Cola 12-oz. cans has the highest contribution margin per linear foot of shelf space. To maximize profits, Murry's should devote all its shelf space to right-cola 12-oz. cans (Round your answer to the nearest whole dollar.) The maximum contribution margin that Murry could generate each day from refrigerated drinks is $ 911 Data Table The beverage stand sells three types of cold drinks: 1. Right-Cola in 12-oz. cans for $1.60 per can 2. Energize - Ade in 20-oz. plastic bottles for $1.65 per bottle 3. Best-Cola in 20-oz. glass bottles for $2.30 per bottle Murry's Beach Hut pays its suppliers the following: 1. $0.25 per 12-oz. can of right-cola 2. $0.45 per 20-oz. bottle of energize-ade 3. $0.65 per 20-oz. bottle of best-cola Murry's Beach Hut's monthly fixed expenses include the following: $ Hut rental ... Refrigerator rental Murry's salary 360 85 1,600 2,045 Total fixed expenses Print DoneStep by Step Solution
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