Each morning, Joe Stenback stocks the drink case at Joe\'s Beach Hut in Myrtle B

ID: 2717492 • Letter: E

Question

Each morning, Joe Stenback stocks the drink case at Joe's Beach Hut in Myrtle Beach, South Carolina. The drink case has120 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles.

The product mix analysis to determine which product would maximize Joe's profits.

Every-Pop

Value-Soda

12 oz. Cans

20 oz. Bottles

Sales price per unit

$1.40

$1.85

$2.25

Variable cost per unit

0.15

0.55

0.90

Contribution margin per unit

1.25

1.30

1.35

Units per linear foot of shelf space

Contribution margin per linear foot of shelf space

$8.75

$3.90

$4.05

Suppose Joe's Beach Hut refuses to devote more than 80 linear feet to any individual product. Under this condition, how many linear feet of each drink should Joe stock? How many units of each product will be available for sale each day?

Joe'sBeach Hut should stock its shelves as follows:

First stock

linear feet with the product that has the

highest

CM per linear foot —

12 oz. cans of Every-Pop

Next stock

linear feet with the product that has the

middle

CM per linear foot —

20 oz. bottles of Value-Soda

How many units of each product will be available for sale each day based on the product mixed determined in the preceding step? (For entries with a $0 balance, make sure to enter "0" in the appropriate cell.)

Units for sale

Every-Pop in 12 oz. cans:

cans

Every-Pop in 20 oz. bottles:

bottles

Value-Soda in 20 oz. bottles: