Each morning, Ned Smith stocks the drink case at Ned Beach Hut in Daytona Beach comma Florida.

Fantastic news! We've Found the answer you've been seeking!

Question:

Each morning, Ned Smith stocks the drink case at Ned Beach Hut in Daytona Beach comma Florida. Ned Beach Hut has 125 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.

The beverage stand sells three types of cold? drinks:

Cola minus Cola in? 12-oz. cans for $ 1.45 per can

Organic minus Ade in? 20-oz. plastic bottles for $ 1.65 per bottle

Tobe minus Cola in? 20-oz. glass bottles for $ 2.10 per bottle

Ned?'s Beach Hut pays its suppliers the? following:

$ 0.10 per? 12-oz. can of cola - cola

$ 0.35 per? 20-oz. bottle of organic - ade

$ 0.70 per? 20-oz. bottle of tobe - cola

Ned?'s Beach? Hut's monthly fixed expenses include the? following:

Hut Rental $355

Refrigerator Rental 70

Ned’s Salary 1,800

Total fixed expenses $2,225

Requirements:

1. What is the constraining factor at Ned?'s Beach? Hut? What should Ned 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 Ned refuses to devote more than 60 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?