Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

i Requirements 1. What is Mike's Beach Hut's constraining factor? What should Mike stock to maximize profits? 2. Suppose Mike's Beach Hut refuses to devote

image text in transcribed
image text in transcribed
image text in transcribed
i Requirements 1. What is Mike's Beach Hut's constraining factor? What should Mike stock to maximize profits? 2. Suppose Mike'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 Mike's stock? How many units of each product will be available for sale each day? Print Done Data Table Mike's Beach Hut sells three types of cold drinks: 1. Yummy Time in 12-oz. cans for $1.50 per can 2. Yummy Time in 20-oz. bottles for $1.75 per bottle 3. Value Soda in 20-oz. bottles for $2.20 per bottle Mike'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. $0.85 per 20-oz. bottle of Value Soda Mike's Beach Hut's monthly fixed costs include: 340 70 1,700 $2,110 Hut rental Refrigerator rental Mike's salary Total fixed costs Print Done Each morning, Mike Ivery stocks the drink case at Mike's Beach Hut in Myrtle Beach, South Carolina. The drink case has 125 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.) Mike's Beach Hut can sell all the drinks stocked in the display case each morning. Read the requirements Requirement 1. What is Mike's Beach Hut's constraining factor? What should Mike stock to maximize profits? The constraining factor is What should Mike stock to maximize profits? Complete the product mix analysis to determine which product would maximize Mike'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 Mike'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 Mike's stock? How many units of each product will be available for sale each day? (Abbreviation used: CM contribution margin.) Mike's Beach Hut should stock its shelves as follows: First stock D - per linear foot- 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 S0 balance, linear feet with the product that has the linear feet with the product that has the make sure to enter "0 in the appropriate cell.) Units for sale Yummy Time in 12 oz. cans: Yummy Time in 20 oz. bottles: Value-Soda in 20 oz. bottles: bottles bottles

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions