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Requirement 1. What is the constraining factor at Joel's Beach Hut? What should Joel stock to maximize profits? What is the maximun contribution margin he could generate from refrigerated drinks each day? The constraining factor is Joel's should stock the drink with the contribution margin. Complete the product mix analysis to determine which product would maximize Joel's profits. The beverage stand sells three types of cold drinks: 1. Cola - Cola in 120z. cans for $1.55 per can 2. Fizzle Pop in 20 -oz. plastic bottles for $1.65 per bottle 3. Orange juice in 200z. glass bottles for $2.20 per bottle Joel's Beach Hut pays its suppliers the following: 1. $0.25 per 120z. can of cola - cola 2. $0.45 per 200z. bottle of fizzle pop 3. $0.65 per 200z. bottle of orange juice Joel's Beach Hut's monthly fixed expenses include the following: ach morning, Joel McKnight stocks the drink case at Joel's Beach Hut in Naples, Florida. Joel's Beach Hut has 110 linear feet of refrigerated isplay 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.) he beverage stand can sell all drinks stocked in the display case each morning. Requirements 1. What is the constraining factor at Joel's Beach Hut? What should Joel 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 Joel 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? 3. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day? ofits? What is the maximum ontribution margin

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