Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Options are below: Thanks! 3. Each morning, Joe Stenback stocks the drink case at Joe's Beach Hut in Grand Isle, Louisiana. Joe's Beach Hut has

image text in transcribed

image text in transcribed

image text in transcribed

Options are below:

image text in transcribed

image text in transcribed

Thanks!

3. Each morning, Joe Stenback stocks the drink case at Joe's Beach Hut in Grand Isle, Louisiana. Joe's Beach Hut has 130 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 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 Joe's Beach Hut? What should Joe stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? Joe's should stock the drink with the (2) contribution The constraining factor is (1) margin. Complete the product mix analysis to determine which product would maximize Joe's profits. Joe's Beach Hut Product Mix Analysis tobe-cola bottled water right-cola 12 oz. Cans 20 oz. Bottles 20 oz. Bottles (3) (4) (5) (6) (7) (8) has the highest contribution margin per linear foot of shelf space. To maximize profits, Joe's should devote all its shelf space to (9) (Round your answer to the nearest whole dollar.) The maximum contribution margin that Joe could generate each day from refrigerated drinks is Requirement 2. To provide variety to customers, suppose Joe refuses to devote more than 65 linear feet and no less than 20 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 Joe should stock his shelves, based on each product's contribution margin (CM): : (12) (10) 1st stock maximum contraint of linear ft. with product having the (11) (13) Next minimum constraint of linear ft. with product having the (14) (16) Stock the remaining linear ft. with product having the (17) CM: (15) : (18) Now calculate the units available for sale based on the product mix determined above. Units for sale cans tobe-cola in 12 oz. cans: bottles bottled water in 20 oz. bottles: bottles right-cola in 20 oz. bottles: fem Requirement 3. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day? (Round your answers to the nearest whole dollar.) Contribution Margin tobe-cola in 12 oz. cans: bottled water in 20 oz. bottles right-cola in 20 oz. bottles: Total 1: Data Table The beverage stand sells three types of cold drinks: 1. ToBe -Cola in 12-oz. cans for $1.45 per can 2. Bottled water in 20-oz. plastic bottles for $1.65 per bottle 3. Right-Cola in 20-oz. glass bottles for $2.25 per bottle Joe's Beach Hut pays its suppliers the following: 1. $0.20 per 12-oz. can of tobe - cola 2. $0.45 per 20-oz. bottle of bottled water 3. $0.65 per 20-oz. bottle of right-cola Joe's Beach Hut's monthly fixed expenses include the following: Hut rental $ 350 60 Refrigerator rental ... 1,750 Joe's salary ......... $ 2,160 Total fixed expenses 2. Requirements 1. What is the constraining factor at Joe's Beach Hut? What should Joe 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 Joe refuses to devote more than 65 linear feet and no less than 20 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? (1) number of right-cola bottles (2) linear feet of shelf space O number of customers per day number of tobe-cola cans number of bottled water bottles highest lowest O Contribution margin for equivalent number of direct labor hours O Contribution margin per linear foot of shelf space O Contribution margin per unit Fixed costs per unit O Sales price per unit O Units per linear foot of shelf space O Variable cost per unit (4) Contribution margin for equivalent number of direct labor hours O Contribution margin per linear foot of shelf space O Contribution margin per unit O Fixed costs per unit O Sales price per unit Units per linear foot of shelf space O Variable cost per unit (5) O Contribution margin for equivalent number of direct labor hours O Contribution margin per linear foot of shelf space O Contribution margin per unit O Fixed costs per unit O Sales price per unit O Units per linear foot of shelf space O Variable cost per unit (6) Contribution margin for equivalent number of direct labor hours O Contribution margin per linear foot of shelf space O Contribution margin per unit 0 Fixed costs per unit O Sales price per unit O Units per linear foot of shelf space Variable cost per unit (7) O O Contribution margin for equivalent number of direct labor hours O Contribution margin per linear foot of shelf space Contribution margin per unit Fixed costs per unit Sales price per unit Units per linear foot of shelf space Variable cost per unit (8) O ToBe-Cola 12-oz. cans O Bottled water 20-oz. bottles O Right-Cola 20-oz. bottles (9) O tobe-cola 12-oz. cans O bottled water 20-oz. bottles Oright-cola 20-oz. bottles 0 65 0 130 (10) O OO O 20 0 45 (14) 0 65 0 130 (11) O O highest O lowest O middle (12) O O 12 oz. cans of tobe-cola 0 20 oz. bottles of bottled water 20 oz. bottles of right-cola (13) 0 00 0 20 45 O highest O lowest middle (15) O (16) 65 OOOO Oo 0 130 12 oz. cans of tobe-cola 20 oz. bottles of bottled water 20 oz. bottles of right-cola OOOO (17) highest lowest O middle 20 OOO 45 (18) O 12 oz. cans of tobe-cola 20 oz. bottles of bottled water 20 oz. bottles of right-cola

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_2

Step: 3

blur-text-image_3

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

Financial Accounting Reporting Analysis And Decision Making

Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong

5th Edition

0730313743, 978-0730313748

More Books

Students also viewed these Accounting questions

Question

Will you actually use Model 7.3 to motivate yourself?

Answered: 1 week ago

Question

Which of the motivational theories do you prefer? Why?

Answered: 1 week ago