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Each morning, Ned Imery stocks the drink case at Ned's Beach Hut in Victoria. Ned's Beach Hut has 42 linear metres of refrigerated display space for cold drinks. Each linear metre can hold either18 341-mL cans or 12 551-mL plastic or glass bottles.
Each day, Ned's Beach Hut can sell all the drinks in the display case.
i . X Data Table Ned's Beach Hut sells three types of cold drinks: 1. Just - Soda in 341-mL cans for $1.45 per can 2. Fizzle Pop in 551-ml plastic bottles for $1.75 per bottle 3. Right - Cola in 551-ml glass bottles for $2.30 per bottle Ned's Beach Hut pays its suppliers the following: 1. $0.20 per 341-mL can of Just-Soda 2. $0.35 per 551-ml bottle of Fizzle Pop 3. $0.75 per 551-ml bottle of Right - Cola Ned's Beach Hut's monthly fixed expenses include the following: Hut rental $ 370 Refrigerator rental 75 1,750 Ned's salary Total fixed expenses 2,195 $ Requirement 1. What is Ned's Beach Hut's constraining factor? What should Ned stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is V. Ned's should stock the drink with the contribution margin. What should Ned stock to maximize profits? Complete the product mix analysis to determine which product would maximize Ned's profits. (Round your answers to the nearest cent.) Ned's Beach Hut Product Mix Analysis Just-Soda 341-mL Cans Fizzle Pop 551-ml Bottles Right-Cola 551-ml Bottles has the highest contribution margin per linear metre of shelf space. To maximize profits, Ned's should devote all its shelf space to The maximum contribution margin that Ned could generate each day from refrigerated drinks is $(Round your answer to the nearest whole dollar.) Requirement 2. To provide variety to customers, suppose Ned refuses to devote more than 30 linear metres and no fewer than 4 linear metres to any individual product. Under this condition, how many linear metres of each drink should Ned stock? How many units of each product will be available for sale each day? Ned refuses to devote more than 30 linear metres and no less than 4 linear metres to any individual product. Show how Ned should stock his shelves, based on each product's contribution margin (CM): 1st stock maximum contraint of linear m with product having the CM: Next minimum constraint of linear m with product having the CM: Stock the remaining linear m with product having the : : How many units of each product will be available for sale each day? Now calculate the units available for sale based on the product mix determined above. Units for sale Just-Soda in 341-mL cans: cans Fizzle Pop in 551-ml bottles: bottles Right-Cola in 551-ml bottles: bottles Requirement 3. Assuming the product mix calculated in Requirement 2, what contribution margin will Ned generate each day? (Round your interim calculations and final answers to the nearest whole dollar.) Contribution Margin Just-Soda in 341-ml cans: Fizzle Pop in 551-ml bottles: Right-Cola in 551-ml bottles: Total
