= Homework: Chapter 08 Graded Homework Question 3, E8-28A (similar to) Part 1 of 7 HW Score: 19%, 5.7 of 30 points Points: 0 of 6 Save Each morning, Larry Smith stocks the drink case at Larry's Beach Hut in Charleston, South Carolina. Larry's Beach Hut has 100 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. Requirement 1. What is the constraining factor at Larry's Beach Hut? What should Larry stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? The constraining factor is Larry's should stock the drink with the contribution margin. linear feet of shelf space number of customers per day number of just-cola cans number of fizzle pop bottles number of value-soda bottles E Homework: Chapter 08 Graded Homework Question 3, E8-28A (similar to) Part 1 of 7 HW Score: 19%, 5.7 of 30 points Points: 0 of 6 Save Each morning, Larry Smith stocks the drink case at Larry's Beach Hut in Charleston, South Carolina. Larry's Beach Hut has 100 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. Th Rel Requirements Re 1. What is the constraining factor at Larry's Beach Hut? What should Larry stock to maximize profits? What is the maximum contribution margin he could generate from refrigerated drinks each day? 3? 1 Thi 2. To provide variety to customers, suppose Larry 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? butt 3. Assuming the product mix calculated in Requirement 2, what contribution margin will be generated from refrigerated drinks each day? Print Done Data table The beverage stand sells three types of cold drinks: 1. Just-Cola in 12-oz. cans for $1.60 per can 2. Fizzle Pop in 20-oz. plastic bottles for $1.70 per bottle 3. Value - Soda in 20-oz. glass bottles for $2.30 per bottle Larry's Beach Hut pays its suppliers the following: 1. $0.15 per 12-oz. can of just-cola 2. $0.35 per 20-oz. bottle of fizzle pop 3. $0.80 per 20-oz. bottle of value-soda Larry's Beach Hut's monthly fixed expenses include the following: Hut rental. Refrigerator rental $ 360 75 1,550 Larry's salary ....... $ 1,985 Total fixed expenses Print Done