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tion list stion 1 O Points: 0 of 1 Save Each moming. Max Smith stocks the drink case at Max's Beach Hut in Galveston,
tion list stion 1 O Points: 0 of 1 Save Each moming. Max Smith stocks the drink case at Max's Beach Hut in Galveston, Texas. Max's Beach Hut has 115 Inear feet of refrigerated display space for cold drinks Each tear foot can held Kether six 12-ounce cans or five 20-ounce plastic or glass bottes (Click the icon to view the information on the cold drinks) The beverage stand can sell all drinks stocked in the display case each moming Read the requirements ation 2 sation 3 tion 4 Requirement 1. What is the constraining factor at Max's Beach Hut? What should Max stock to maximize profits? What is the maximum contribution margin he could generate um refrigerated dinks each day? The constraining factor is Data table Max's should stock the drink with the contribution margin tion 5 ion 6 The beverage stand sells three types of cold drinks 1. Right-Cola in 12-oz cans for $1.50 per can 2. Energize-Ade in 20-oz, plastic bottes for $1.85 per bottle 3. Tobe-Cola in 20-oz. glass bottles for $2.25 per bottle Max's Beach Hut pays its suppliers the following: 1.50.15 per 12-oz. can of right-cola 2. $0.35 per 20-oz bottle of energize-ade 3. $0.70 per 20-oz. bottle of tobe-cola Max's Beach Hur's monthly fixed expenses include the following Hut rental.. 345 Refrigerator rental 80 1.650 Max's salary 2.075 Total fixed expenses Requirements 1. What is the constraining factor at Max's Beach Hut? What should Max 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 Max refuses to devote more than 65 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 mox calculated in Requirement 2, what contribution marginwill be generated from refrigerated drinks each day? Print Done
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