E$3$ q$18$ or five $20-$ounce plastic or glass bottles.

Clew the information on the cold drinks.

The beverage stand can sell all drinks stocked in the display case each morning.

Requirement $1.$ What is the constraining factor at Nick's Beach Hut? What should Nick stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day?

The constraining factor is

$.$ Nick's should stock the drink with the

contribution margin.

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

Nick's Beach Hut

Product Mix Analysis

$($Round your answer to the nearest whole dollar.$)$

The maximum contribution margin that Nick could generate each day from refrigerated drinks is

The maximum contribution margin that Nick could generate each day from refrigerated drinks is

be stocked? How many units of each product will be available for sale each day?

Show how Nick should stock his shelves, based on each product's contribution margin $($CM$)$:

$1$st stock maximum contraint of

$|$ linear ft$.$ with product having the

$CM$:

Next minimum constraint of

linear ft$.$ with product having the

$CM$ :

Stock the remaining

linear $ft.$ with product having the

$CM$ :

Now calculate the units available for sale based on the product mix determined above.

Requirement $3.$ Assuming the product mix calculated in Requirement $2,$ what contribution margin will be generated from refrigerated drinks each day? $($Round

Contribution Margin

cola$-$cola in $12$ oz$.$ cans:

organic$-$ade in $20oz.$ bottles:

right$-$cola in $20$ oz$.$ bottles:

Total

Information on the cold drinks

The beverage stand sells three types of cold drinks:

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

Organic $-$ Ade in $20-oz.$ plastic bottles for $$1\mathrm{.}75$ per bottle

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

Nick's Beach Hut pays its suppliers the following:

$$0\mathrm{.}20$ per $12-oz.$ can of cola $-$ cola

$$0\mathrm{.}35$ per $20-$oz$.$ bottle of organic$-$ade

$$0\mathrm{.}75$ per $20-oz,$ bottle of right $-$ cola

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