= Homework: Chapter 8 Homework Question 4, E8-28A (simil... Part 2 of 7 HW Score: 50.98%, 5.1 of 10 points Points: 0.1 of 2 Save Each morning, Joe McKnight stocks the drink case at Joe's Beach Hut in Charleston, South Carolina. Joe's Beach Hut has 95 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either seven 12-ounce cans or three 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 Joe's Beach Hut? What should Joe 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 Joe's should stock the drink with the highest contribution margin. Complete the product mix analysis to determine which product would maximize Joe's profits. - Data Table Joe's Beach Hut Product Mix Analysis right-cola 12 oz. Cans boost-soda orange soda 20 oz. Bottles 20 oz. Bottles 1.65 Sales price per unit 1.5 2.25 The beverage stand sells three types of cold drinks: 1. Right-Cola in 12-oz. cans for $1.50 per can 2. Boost - Soda in 20-oz. plastic bottles for $1.65 per bottle 3. Orange Soda in 20-oz. glass bottles for $2.25 per bottle Joe's Beach Hut pays its suppliers the following: 1. $0.25 per 12-oz. can of right-cola 2. $0.35 per 20-oz. bottle of boost - soda 3. $0.80 per 20-oz. bottle of orange soda Joe's Beach Hut's monthly fixed expenses include the following: 0.25 0.35 0.8 Variable cost per unit Contribution margin per unit 1.25 1.3 1.45 Units per linear foot of shelf space Contribution margin per linear foot of shelf space Hut rental... $ 360 Refrigerator rental 85 1,700 Joe's salary... $ Total fixed expenses .... 2,145 Help Me Solve This Video Get More Help Print Done Check