Each morning, Murry Kyler stocks the drink case at Murry's Beach Hut in Newark, New Jersey....

 

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Each morning, Murry Kyler stocks the drink case at Murry's Beach Hut in Newark, New Jersey. Murry's Beach Hut has 120 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or four 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. Data Table The beverage stand sells three types of cold drinks: 1. Grand Cola in 12-oz. cans for $1.60 per can 2. Fizzle Pop in 20-oz. plastic bottles for $1.65 per bottle 3. Value - Soda in 20-oz. glass bottles for $2.25 per bottle Murry's Beach Hut pays its suppliers the following: 1. $0.25 per 12-oz. can of grand - cola 2. $0.35 per 20-oz. bottle of fizzle pop 3. $0.80 per 20-oz. bottle of value - soda Murry's Beach Hut's monthly fixed expenses include the following: $ Hut rental Refrigerator. rental. Murry's salary. Total fixed expenses..............= $ 350 80 1,800 2,230 i Requirements 1. What is the constraining factor at Murry's Beach Hut? What should Murry 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 Murry refuses to devote more than 70 linear feet and no less than 20 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? Print X Done Each morning, Murry Kyler stocks the drink case at Murry's Beach Hut in Newark, New Jersey. Murry's Beach Hut has 120 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either five 12-ounce cans or four 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. Data Table The beverage stand sells three types of cold drinks: 1. Grand Cola in 12-oz. cans for $1.60 per can 2. Fizzle Pop in 20-oz. plastic bottles for $1.65 per bottle 3. Value - Soda in 20-oz. glass bottles for $2.25 per bottle Murry's Beach Hut pays its suppliers the following: 1. $0.25 per 12-oz. can of grand - cola 2. $0.35 per 20-oz. bottle of fizzle pop 3. $0.80 per 20-oz. bottle of value - soda Murry's Beach Hut's monthly fixed expenses include the following: $ Hut rental Refrigerator. rental. Murry's salary. Total fixed expenses..............= $ 350 80 1,800 2,230 i Requirements 1. What is the constraining factor at Murry's Beach Hut? What should Murry 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 Murry refuses to devote more than 70 linear feet and no less than 20 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? Print X Done

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1 The constraining factor is linear feet of shelf space Murrys should stock the drink with the highe... View the full answer