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1. What is the constraining factor at Larry's Beach Hut? What should Larry 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 Larry refuses to devote more than 60 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? 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. ToBe -Cola in 12-oz. cans for $1.55 per can 2. Root Beer in 20-oz. plastic bottles for $1.70 per bottle 3. Right - Cola in 20-oz. glass bottles for $2.20 per bottle Larry's Beach Hut pays its suppliers the following: 1. $0.20 per 12-oz. can of tobe-cola 2. $0.40 per 20-oz. bottle of root beer 3. $0.75 per 20-oz. bottle of right-cola Larry's Beach Hut's monthly fixed expenses include the following: $ Hut rental... Refrigerator rental Larry's salary 380 80 1,850 $ 2,310 Total fixed expenses Each morning, Larry Kyler stocks the drink case at Larry's Beach Hut in Naples, Florida. Larry's Beach Hut has 110 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 12-ounce cans or three 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 Larry's Beach Hut? What should Larry stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is Larry's should stock the drink with the contribution margin

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