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Each morning, Mike Smith stocks the drink case at Mike's Beach Hut in Virginia Beach, Virginia. Mike'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 five $20-$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.

What is the constraining factor at Mike's Beach Hut? What should Mike stock tomaximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day?

To provide variety to customers, suppose Mike 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?

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:

Grand $-$ Cola in $12-0z.$ cans for $$1\mathrm{.}55$ per can

Bottled water in $20-$ oz$.$ plastic bottles for $$1\mathrm{.}80$ per bottle

Value $-$ Soda in $20-$oz$.$ glass bottles for $$2\mathrm{.}25$ per bottle

Mike's Beach Hut pays its suppliers the following:

$$0\mathrm{.}25$ per $12-oz.$ can of grand $-$ cola

$$0\mathrm{.}35$ per $20-$ z$.$ bottle of bottled water

$$0\mathrm{.}70$ per $20-$ oz$.$ bottle of value $-$ soda

Mike's Beach Hut's monthly fixed expenses include the following:

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