This Question: 1 pt 2 of 4 (0 complete) This Qu Each morning, Joe McKnight stock

Question

This Question: 1 pt 2 of 4 (0 complete) This Qu Each morning, Joe McKnight stocks the drink case at Joe's Beach Hut in Myrtle Beach, South Carolina. The drink case has 120 linear feet of refrigera Each linear foot can hold either six 12-ounce cans or three 20-ounce bottles ? (click the icon to view the information on the cold drinks ) Joe's Beach Hut can sell all the drinks stocked in the display case each morning Read the requirements Requirement 1. What is Joe's Beach Hut's constraining factor? What should Joe stock to maximize profits? The constraining factor is What should Joe stock to maximize profits? Complete the product mix analysis to determine which product would maximize Joe's profits Just-SodaPretty Pop 20 oz. Bottles 20 oz. Bottles Just-Soda 12 oz. Cans Sales price per unit Variable cost per unit Contribution margin per unit Units per linear foot of shelf space Contribution margin per linear foot of shelf space Decision: Stock Choose from any list or enter any number in the input fields and then continue to the next question.

Explanation / Answer

Requirement 1 :

The constraining factor : Shelf Space.

Decision : Stock Just Soda 12 oz cans.

Requirement 2:

First stock 85 linear feet with the product that has the $ 7.50 CM per linear foot : Just Soda 12 oz cans

Next stock 35 linear feet with the produt that has the $ 5.10 CM per linear foot : Pretty Pop 20 oz cans.

Just Soda 12 oz Just Soda 20 oz Pretty Pop 20 oz Sales price per unit 1.45 1.75 2.20 Variable cost per unit 0.20 0.45 0.50 Contribution margin per unit 1.25 1.30 1.70 Units per linear foot of shelf space 6 3 3 Contribution margin per linear foot of shelf space $ 7.50 $ 3.90 $ 5.10

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