Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please explain how to find the units per linear foot of shelf space E8-26A (similar to) Question Help o Each morning, Ned Smith stocks the
Please explain how to find the units per linear foot of shelf space
E8-26A (similar to) Question Help o Each morning, Ned Smith stocks the drink case at Ned's Beach Hut in Myrtle Beach, South Carolina. Ned's Beach Hut has 125 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or three 20 ounce plastic or glass bottles. (Click the icon to view the information on the cold drinka.) The beverage sland can sell all drinks slocked in the display case cach morning. Data Table Read the requirements. Requirement 1. What is the constraining factor at Ned's Beach Hut? What should Ned stock to maximize profits? What is the maximum contr The constraining factor is linear feet of shelf space Ned's should stock the drink with the highest contribution margin. Complete the product mix analysis to determine which product would maximize Ned's profits. The beverage stand sells three types of cold drinks: 1. Just-Cola in 12-oz. cans for $1.60 per can 2. Bottled water in 20-oz. plastic bottles for $1.65 per bottle 3. Orange Soda in 20-oz. glass bottles for $2.25 per bottle Ned's Beach Hut pays its suppliers the following: 1. $0.10 per 12-cz. can of Just-cola 2. $0.35 per 20 oz. bottle of bottled water 3. $0.80 per 20 oz. bottle of orange soda Ned's Beach Hut's monthly fixed expenses include the following: Ned's Beach Hut Product Mix Analysis just-cola orange soda Hut rental $ 350 12 oz. Cans 1.60 bottled water 20 oz Bottles 1.65 0.35 20 oz. Bottles 2.25 Sales price per unit Refrigerator rental 60 0.10 0.80 1,850 Ned's salary.....! Total fixed expenses ..... 1.50 1.30 1.45 $ 2,260 Variable cost per unit Contribution margin per unit Units per linear foot of shelf space Contribution margin per linear foot of shelf space X Print Done Choose from any list or enter any number in the input fields and then click CheckStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started