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please help, thank you so much! Each morning, Larry Rouse stocks the drink case at Larry's Beach Hut in Myrtle Beach, South Carolina. The drink
please help, thank you so much!
Each morning, Larry Rouse stocks the drink case at Larry's Beach Hut in Myrtle Beach, South Carolina. The drink case has 110 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.) Larry's Beach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. Data table 12 oz. Cans 20 oz. Bottles 20 oz. Bottles 2.351 Sales price per unit 1.65 1.901 0.25 (1.40 0.60 Variable cost per unit Contribution margin per unit 1.40 1.50 1.75 Units per linear foot of shelf space X Contribution margin per linour foot of shelf space Larry's Beach Hut sells three types of cold drinks: 1. Just-Soda in 12-oz. cans for $1.65 per can 2. Just - Soda in 20 oz. bottles for $1.90 per bottle 3. Right - Cola in 20-oz. bottles for $2.35 per bottle Larry's Beach Hut pays its suppliers: 1. $0.25 per 12-oz. can of Just - Soda 2. $0.40 per 20-oz. bottle of Just - Soda 3. $0.60 per 20-oz. bottle of Right - Cola Larry's Beach Hut's monthly fixed costs include: Hut rental $ 370 Refrigerator rental 70 1,400 Larry's salary $ Total fixed costs 1,840 Decision: Stock be available for Requirement 2. Suppose Larry's Beach Hut refuses to devote more than 65 linear feet to any individual product. Under this condition, how m sale each day? (Abbreviation used: CM = contribution margin.) Larry's Beach Hut should stock ils shelves as follows: CM per linear foot- First stock linear feet with the product that has the Next stock linear feet with the product that has the CM per linear foot Requirements How many units of each product will be available for sale each day based on the product mixed determined in the preceding step Just-Soda in 12 oz. cans: . cans Just-Soda in 20 oz. bottles: bottles Right-Cola in 20 oz. bottles: bottles 1. What is Larry's Beach Hut's constraining factor? What should Larry stock to maximize profits? 2. Suppose Larry's Beach Hut refuses to devote more than 65 linear feet to any individual product Under this condition, how many linear feet of each drink should Larry's stock? How many units of each product will be available for sale each day? CalculatorStep by Step Solution
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