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please do all 3 requirements, questions 1,2,3 Each morning, Nick Cole stocks the drink case at Nick's Beach Hut in Grand Isle, Louisiana. Nick's Beach
please do all 3 requirements, questions 1,2,3
Each morning, Nick Cole stocks the drink case at Nick's Beach Hut in Grand Isle, Louisiana. Nick's Beach Hut has 100 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 12-ounce cans or five 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 Nick's Beach Hut? What should Nick stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is linear feet of shelf space Nick's should stock the drink with the highest contribution margin. Complete the product mix analysis to determine which product would maximize Nick's profits Nick's Beach Hut Product Mix Analysis cola-cola boost-soda orange soda 12 oz. Cans 20 oz. Bottles 20 oz. Bottles Requirements 1. What is the constraining factor at Nick's Beach Hut? What should Nick 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 Nick refuses to devote more than 60 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? Check Answer Data Table The beverage stand sells three types of cold drinks: 1. Cola - Cola in 12-oz. cans for $1.55 per can 2. Boost -Soda in 20-oz. plastic bottles for $1.75 per bottle 3. Orange Soda in 20-oz. glass bottles for $2.30 per bottle Nick's Beach Hut pays its suppliers the following: 1. $0.15 per 12-oz. can of cola - cola 2. $0.30 per 20-oz. bottle of boost - soda 3. $0.75 per 20-oz. bottle of orange soda Nick's Beach Hut's monthly fixed expenses include the following: Hut rental Refrigerator rental Nick's salary Total fixed expenses 355 80 1,750 $2,185 Print DoneStep by Step Solution
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