Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

q4 Data table The beverage stand sells three types of cold drinks: 1. Grand-Cola in 12-oz. cans for $1.45 per can 2. Organic - Ade

q4
image text in transcribed
image text in transcribed
Data table The beverage stand sells three types of cold drinks: 1. Grand-Cola in 12-oz. cans for $1.45 per can 2. Organic - Ade in 20-oz. plastic bottles for $1.70 per bottle 3. Orange juice in 20-oz. glass bottles for $2.20 per bottle Murry's Beach Hut pays its suppliers the following: 1. $0.10 per 12-oz. can of grand-cola 2. $0.30 per 20-oz. bottle of organic -ade 3. $0.75 per 20-oz. bottle of orange juice Murry's Beach Hut's monthly fixed expenses include the following: Hut rental $ 360 Refrigerator rental 80 1,700 Murry's salary $ 2,140 Total fixed expenses 1 Requirements 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? 2. To provide variety to customers, suppose Murry 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? Each morning, Murry Cole stocks the drink case at Murry's Beach Hut in Naples, Florida. Murry's Beach Hut has 105 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 12-ounce cans or three 20-ounce plastic or glass bottles. E: (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 Murry's should stock the drink with the contribution margin linear feet of shelf space number of customers per day number of grand-cola cans number of organic-ade bottles Get more help number of orange juice bottles lear all Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions