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Each morning, Joel Imery stocks the drink case at Joel's Beach Hut in Charleston, South Carolina. Joel's Beach Hut has 110 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either seven 12-ounce cans or five 20-ounce plastic or glass bottles. ED(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 X Requirements Requirement 1. What is the constraining factor at Joel's Beach Hut? What should Joel 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 . Joel's should stock the drink with the highest contribution margin. 1. What is the constraining factor at Joel's Beach Hut? What should Joel stock to maximize profits? What is the maximum contribution margin he could generate from Complete the product mix analysis to determine which product would maximize Joel's profits. refrigerated drinks each day? 2. To provide variety to customers, suppose Joel refuses to devote more than 75 linear Joel's Beach Hut feet and no less than 5 linear feet to any individual product. Under this condition, how Product Mix Analysis many linear feet of each drink should be stocked? How many units of each product will be available for sale each day? grand-cola fizzle pop best-cola 3. Assuming the product mix calculated in Requirement 2, what contribution margin will 12 oz. Cans 20 oz. Bottles 20 oz. Bottles be generated from refrigerated drinks each day? Sales price per unit 1.40 1.75 2.15 Variable cost per unit 0.25 0.40 0.65 Contribution margin per unit 1.15 1.35 1.50 Print Done Units per linear foot of shelf space Contribution margin per linear foot of shelf space 8.05 6.75 7.50 Grand-Cola 12-oz. cans has the highest contribution margin per linear foot of shelf space. To maximize profits, Joel's should devote all its shelf space to grand-cola 12-oz. cans (Round your answer to the nearest whole dollar.) The maximum contribution margin that Joel could generate each day from refrigerated drinks is $ Requirement 2. To provide variety to customers, suppose Joel refuses to devote more than 75 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? Show how Joel should stock his shelves, based on each product's contribution margin (CM): Ist stock maximum contraint of 75 linear it. with product having the highest CM: 12 oz. cans of grand-cola - X Next minimum constraint of 5 linear ft. with product having the lowest CM: 20 oz. bottles of fizzle pop Data table Stock the remaining 30 linear ft. with product having the middle CM: 20 oz. bottles of best-cola Now calculate the units available for sale based on the product mix determined above. The beverage stand sells three types of cold drinks: 1. Grand - Cola in 12-oz. cans for $1.40 per can Units for sale 2. Fizzle Pop in 20-oz. plastic bottles for $1.75 per bottle grand-cola in 12 oz. cans: 525 cans 3. Best - Cola in 20-oz. glass bottles for $2.15 per bottle Joel's Beach Hut pays its suppliers the following: fizzle pop in 20 oz. bottles: 25 bottles 1. $0.25 per 12-oz. can of grand - cola best-cola in 20 oz. bottles: 150 bottles 2. $0.40 per 20-oz. bottle of fizzle pop 3. $0.65 per 20-oz. bottle of best - cola 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.) Joel's Beach Hut's monthly fixed expenses include the following: Contribution Margin Hut rental . . . . . . . . . . . . .. $ 345 grand-cola in 12 oz. cans: 604 Refrigerator rental . . . . . . 80 fizzle pop in 20 oz. bottles: 34 1,75 Joel's salary . . . . . . . . .. best-cola in 20 oz. bottles: 225 2,175 Total fixed expenses . . . Total 863 Print DoneEach morning, Nathan Cole stocks the drink case at Nathan's Beach Hut in Myrtle Beach, South Carolina. Nathan's Beach Hut has 130 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 Nathan's Beach Hut? What should Nathan stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is V. Nathan's should stock the drink with the contribution margin. - X Data table The beverage stand sells three types of cold drinks: - X 1. Cola - Cola in 12-oz. cans for $1.50 per can Requirements 2. Energy Drink in 20-oz. plastic bottles for $1.85 per bottle 3. Orange Soda in 20-oz. glass bottles for $2.30 per bottle Nathan's Beach Hut pays its suppliers the following: 1. What is the constraining factor at Nathan's Beach Hut? What should Nathan stock to 1. $0.10 per 12-oz. can of cola - cola 2. $0.35 per 20-oz. bottle of energy drink maximize profits? What is the maximum contribution margin he could generate from 3. $0.70 per 20-oz. bottle of orange soda refrigerated drinks each day? 2. To provide variety to customers, suppose Nathan refuses to devote more than 70 Nathan's Beach Hut's monthly fixed expenses include the following: 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 Hut rental . . . . . . . . . $ 385 units of each product will be available for sale each day? Refrigerator rental . . . . . . 60 3. Assuming the product mix calculated in Requirement 2, what contribution margin will 1.700 be generated from refrigerated drinks each day? Nathan's s $ 2.145 Total fixed expenses . . . . Print Done Print Done