either seven 12-ounce cans or five 20 -ounce plastic or glass bottles. The beverage stand can sell all drinks stocked in the display case each morning. drinks each day? The constraining factor is Ned's should stock the drink with the contribution margin. Requirements Information on the cold drinks 1. What is the constraining factor at Ned's Beach Hut? What should Ned 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 Ned refuses to devote more than 75 linear feet and no less than 10 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? The beverage stand sells three types of cold drinks: 1. Just - Cola in 12oz. cans for $1.40 per can 2. Fizzle Pop in 20 -oz. plastic bottles for $1.70 per bottle 3. Best - Cola in 20 -oz. glass bottles for $2.20 per bottle Ned's Beach Hut pays its suppliers the following: 1. $0.25 per 12oz. can of just - cola 2. $0.45 per 20 oz. bottle of fizzle pop 3. $0.80 per 20 oz. bottle of best - cola Ned's Beach Hut's monthly fixed expenses include the following