$($Click the icon to view the information on the cold drinks.$)$

Mike's Beach Hut can sell all the drinks stocked in the display case each morning.

Read the requirements.

Requirement $1.$ What is Mike's Beach Hut's constraining factor? What should Mike stock to maximize profits?

The constraining factor is linear feet of shelf space

What should Mike stock to maximize profits?

Complete the product mix analysis to determine which product would maximize Mike's profits.

Decision: Stock all $12$ oz$.$ cans of Just$-$Soda

drink should Mike's stock? How many units of each product will be available for sale each day? $($Abbreviation used: $CM=$ contribution margin.$)$

Mike's Beach Hut should stock its shelves as follows:

First stock

Next stock

linear feet with the product that has the

linear feet with the product that has the

CM per linear foot $-$

CM per linear foot $-$

table

each Hut sells three types of cold drinks:

ist $-$ Soda in $12-$oz$.$ cans for $$1\mathrm{.}45$ per can

Ist $-$ Soda in $20-$oz$.$ bottles for $$1\mathrm{.}90$ per bottle

ep $-$ Cola in $20-$oz$.$ bottles for $$2\mathrm{.}10$ per bottle

each Hut pays its suppliers:

$\mathrm{.}40$ per $12-$oz$.$ can of Just $-$ Soda

$\mathrm{.}45$ per $20-0z.$ bottle of Just $-$ Soda

$\mathrm{.}60$ per $20-oz.$ bottle of Pep $-$ Cola

each Hut's monthly fixed costs include:

Requirements

What is Mike's Beach Hut's constraining factor? What should Mike stock to maximize profits?

Suppose Mike's Beach Hut refuses to devote more than $55$ linear feet to any individual product.

Under this condition, how many linear feet of each drink should Mike's stock? How many units of

each product will be available for sale each day?