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c Each morning, Joe Preston stocks the drink case at Joe's Beach Hut in Grand Isle, Louisiana. Joe's Beach Hut has 115 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. Read the requirements. -X ad Data Table ca s ct The beverage stand sells three types of cold drinks: 1. Right - Cola in 12-oz. cans for $1.60 per can 2. Organic - Ade in 20-oz. plastic bottles for $1.65 per bottle 3. Best - Cola in 20-oz. glass bottles for $2.20 per bottle Joe's Beach Hut pays its suppliers the following: 1. $0.20 per 12-oz. can of right-cola 2. $0.30 per 20-oz. bottle of organic - ade 3. $0.65 per 20-oz. bottle of best - cola Joe's Beach Hut's monthly fixed expenses include the following: $ 365 Hut rental... Refrigerator rental Joe's salary... 80 1,600 $ 2,045 Total fixed expenses Fields Print Done i Requirements 1. What is the constraining factor at Joe's Beach Hut? What should Joe 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 Joe refuses to devote more than 70 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? fi Print Done Joe's Beach Hut Product Mix Analysis right-cola 12 oz. Cans best-cola organic-ade 20 oz. Bottles 20 oz. Bottles Choose from any list or enter any number in the input fields and then click Check Answer. 5 parts remaining Clear All

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