Each$$morning$,$

MaxMax

StenbackStenback

stocks the drink case at

MaxMax$\text{'}$s

Beach Hut in

Naples comma FloridaNaples,$$Florida$.$

MaxMax$\text{'}$s

Beach Hut has

$120120$

linear feet of refrigerated display space for cold drinks. Each linear foot can hold either

fivefive

$12-$ounce cans or

threethree

$20-$ounce plastic or glass bottles.

View the information on the cold drinks.

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

Read the requirements.

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Question content area bottom

Part $1$

Requirement $1.$ What is the constraining factor at

MaxMax$\text{'}$s

Beach$$Hut$?$ What should

MaxMax

stock to maximize$$profits$?$ What is the maximum contribution margin he could generate from refrigerated drinks each$$day$?$

The constraining factor is

linear feet of shelf space

$.$

MaxMax$\text{'}$s

should stock the drink with the

highest

contribution margin per unit of constraint.

Part $2$

Complete the product mix analysis to determine which product would maximize

MaxMax$\text{'}$s

profits.

Max's Beach Hut

Product Mix Analysis

$$

cola$-$cola

bottled water

tobe$-$cola

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$12$ oz$.$ Cans

$20$ oz$.$ Bottles

$20$ oz$.$ Bottles

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