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Please see the requirements in the small window. Each morning, Murry Rouse stocks the drink case at Murry's Beach Hut in Galveston, Texas. Murry's Beach
Please see the requirements in the small window.
Each morning, Murry Rouse stocks the drink case at Murry's Beach Hut in Galveston, Texas. Murry's Beach Hut has 105 lincar fect of refrigerated cisplay space for cold drinks. Each linear foot can hold cither five 12-ounce cans or three 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 Murry's Beach Hut? What should Murry 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 Murry's should stock the drink with the highest contribution margin. Complete the product mix analysis to determine which product would maximize Murry's profits. 0 Data Table Murry's Beach Hut Product Mix Analysis grand-cola 12 oz. Cans root beer 20 oz. Bottles value-soda 20 oz. Bottles The beverage stand sells three types of cold drinks: 1. Grand-Cola in 12-cz. Cans for $1.50 per can 2. Root Beer in 20-oz. plastic bottles for $1.75 per bottle 3. Value - Soda in 20-oz. glass bottles for $2.25 per bottle Murry's Beach Hut pays its suppliers the following: 1. $0.20 per 12-oz. can of grand-cola 2. $0.35 per 20-oz. bottle of root beer 3. $0.70 per 20-oz. bottle of value-soda Murry's Beach Hut's monthly fixed expenses include the following: 380 Hut rental ....................$ Refrigerator rental Murry's salary ............. $ Tolal fixed expenses 70 1,850 2,300 Print DoneStep by Step Solution
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