Requirement 2. To provide variety to customers, suppose Joe refuses to devote more than 60 linear feet and no less than 20 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?

Show how Joe should stock his shelves, based on each product's contribution margin (CM):

1st stock maximum contraint of ___linear ft. with product having the _____CM: ____

Next minimum constraint of _____ linear ft. with product having the _____CM: ______

Stock the remaining ____ linear ft. with product having the ____ CM: _____

Now calculate the units available for sale based on the product mix determined above.

Now calculate the units available for sale based on the product mix determined above.

Units per sale:

just- cola in 12 oz. cans: ________ cans

energy drink in 20 oz. bottles _______ bottles

tobe-cola in 20 oz bottles _______ bottles

Requirement 3. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day? (Round your answers to the nearest whole dollar.)

Contribution margin:

just-cola in 12 oz. cans: _________

energy drink in 20 oz. bottles: ________

tobe-cola in 20 oz bottles: __________

Total: ____________

Data Table Is the argin The beverage stand sells three types of cold drinks: 1. Just - Cola in 12-oz. cans for $1.55 per can 2. Fizzle Pop in 20-oz. plastic bottles for $1.70 per bottle 3. Best-Cola in 20-oz. glass bottles for $2.15 per bottle Joe's Beach Hut pays its suppliers the following: 1. $0.15 per 12-oz. can of just - cola 2. $0.35 per 20-oz. bottle of fizzle pop 3. $0.70 per 20-oz. bottle of best - cola Joe's Beach Hut's monthly fixed expenses include the following: st-co Bot $ 385 Hut rental Refrigerator rental Joe's salary Total fixed expenses 80 1,800 2,265 $ Print Done m ti eral i Requirements m 1. What is the constraining factor at Joe's Beach Hut? What should Joe 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 Joe refuses to devote more than 60 linear feet and no less than 20 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? la ttle Print Done Each morning, Joe Root stocks the drink case at Joe's Beach Hut in Myrtle Beach, South Carolina. Joe's Beach Hut has 115 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or four 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 Joe's Beach Hut? What should Joe 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 Joe's should stock the drink with the highest contribution margin. Complete the product mix analysis to determine which product would maximize Joe's profits. Joe's Beach Hut Product Mix Analysis just-cola best-cola 12 oz. Cans 20 oz. Bottles 20 oz. Bottles Sales price per unit Variable cost per unit Contribution margin per unit Units per linear foot of shelf space Contribution margin per linear foot of shelf space fizzle pop Choose from any list or enter any number in the input fields and then click Check