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Question Help Each moming, Larry Ronald stocks the drink case at Larry's Beach Hut in Niagara - on-the-Lake. Larry's Beach Hut has 30 linear metres
Question Help Each moming, Larry Ronald stocks the drink case at Larry's Beach Hut in Niagara - on-the-Lake. Larry's Beach Hut has 30 linear metres of refrigerated display space for cold drinks. Each linear metre can hold either 18 341-mL cans or 14 551-ml plastic or glass bottles. B Click the icon to view the information on the cold drinks.) Each day, Larry's Beach Hut can sell all the drinks in the display case. Requirements Cold drinks information The constraining factor is linear metres of shelf space. Larry's should stock the drink with the highest contribution margin. What should Larry stock to maximize profits? Complete the product mix analysis to determine which product would maximize Larry's profits. (Round your answers to the nearest cent.) Larry's Beach Hut Product Mix Analysis Larry's Beach Hut sells three types of cold drinks: 1. Just-Soda in 341-ml cans for $1.60 per can 2. Fizzle Pop in 551-ml plastic bottles for $1.65 per bottle 3. Right-Cola in 551-mL glass bottles for $2.20 per bottle Larry's Beach Hut pays its suppliers the following: 1. $0.10 per 341-mL can of Just-Soda 2. $0.35 per 551-ml bottle of Fizzle Pop 3. $0.65 per 551-ml bottle of Right-Cola Larry's Beach Hut's monthly fixed expenses include the following: Just-Soda Fizzle Pop 341-ml Cans Right-Cola 551-ml Bottles 551-ml Bottles Sales price per unit $ 1.60 S 1.65 $ 2.20 Hut rental 0.10 360 Variable cosi per unit Contribution margin per unit 0.35 0.65 Refrigerator rental 70 1.50 1.30 1.55 Larry's salary 1.850 Units per linear metre of shelf space 18 14 14 Total fixed expenses $ 2.280 Contnbution margin per linear metre of shelf space 27.00 $ 18.20 21.70 Just-Soda 341-ml cans has the highest contribution margin per linear metre of shelf space. To maximize profits, Larry's should devote all its shelf spa Print Done Done The maximum contribution margin that Larry could generate each day from refrigerated drinks is $ (Round your answer to the nearest whole dollar.) Enter your answer in the answer box and then click Check Answer parts remaining Clear All
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