Each morning, Mike Root stocks the drink case at Mike's Beach Hut in Myrtle Beach, South Carolina. The drink case has 90 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles. View the information on the cold drinks. MikeBeach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. - X Requirement 1. What is Mike's Beach Hut's constraining factor? What should Mike's Beach Hut stock to maximize profits? The constraining factor is linear feet of shelf space What should Mike's Beach Hut stock to maximize profits? Complete the product mix analysis to determine which product would maximize Mike's Beach Hut's profits. Yummy Time 12 oz. Cans Yummy Time 20 oz. Bottles Pretty Pop 20 oz. Bottles 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 Cold Drinks Information Mike's Beach Hut sells three types of cold drinks: Drink Sales Price Cost Yummy Time in 12-oz. cans Yummy Time in 20-oz. bottles Pretty Pop in 20-oz. bottles $ 1.40 per can $ 0.05 per can 1.85 per bottle 0.30 per bottle 2.40 per bottle 0.70 per bottle MikeBeach Hut's monthly fixed costs include: Hut rental $ Refrigerator rental Mike's salary $ 365 80 1,700 2,145 Total fixed costs Requirements 1. What is Mike's Beach Hut's constraining factor? What should Mike's Beach Hut stock to maximize profits? 2. Suppose Mike's Beach Hut refuses to devote more than 50 linear feet to any individual product. Under this condition, how many linear feet of each drink should Mike's Beach Hut stock? How many units of each product will be available for sale each day? -X
Each morning, Mike Root stocks the drink case at Mike's Beach Hut in Myrtle Beach, South Carolina. The drink case has 90 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles. View the information on the cold drinks. MikeBeach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. - X Requirement 1. What is Mike's Beach Hut's constraining factor? What should Mike's Beach Hut stock to maximize profits? The constraining factor is linear feet of shelf space What should Mike's Beach Hut stock to maximize profits? Complete the product mix analysis to determine which product would maximize Mike's Beach Hut's profits. Yummy Time 12 oz. Cans Yummy Time 20 oz. Bottles Pretty Pop 20 oz. Bottles 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 Cold Drinks Information Mike's Beach Hut sells three types of cold drinks: Drink Sales Price Cost Yummy Time in 12-oz. cans Yummy Time in 20-oz. bottles Pretty Pop in 20-oz. bottles $ 1.40 per can $ 0.05 per can 1.85 per bottle 0.30 per bottle 2.40 per bottle 0.70 per bottle MikeBeach Hut's monthly fixed costs include: Hut rental $ Refrigerator rental Mike's salary $ 365 80 1,700 2,145 Total fixed costs Requirements 1. What is Mike's Beach Hut's constraining factor? What should Mike's Beach Hut stock to maximize profits? 2. Suppose Mike's Beach Hut refuses to devote more than 50 linear feet to any individual product. Under this condition, how many linear feet of each drink should Mike's Beach Hut stock? How many units of each product will be available for sale each day? -X
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 1RP
Related questions
Question
Transcribed Image Text:Each morning, Mike Root stocks the drink case at Mike's Beach Hut in Myrtle Beach, South Carolina. The drink case has 90 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles.
View the information on the cold drinks.
MikeBeach Hut can sell all the drinks stocked in the display case each morning.
Read the requirements.
- X
Requirement 1. What is Mike's Beach Hut's constraining factor? What should Mike's Beach Hut stock to maximize profits?
The constraining factor is linear feet of shelf space
What should Mike's Beach Hut stock to maximize profits?
Complete the product mix analysis to determine which product would maximize Mike's Beach Hut's profits.
Yummy Time
12 oz. Cans
Yummy Time
20 oz. Bottles
Pretty Pop
20 oz. Bottles
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
Cold Drinks Information
Mike's Beach Hut sells three types of cold drinks:
Drink
Sales Price
Cost
Yummy Time in 12-oz. cans
Yummy Time in 20-oz. bottles
Pretty Pop in 20-oz. bottles
$ 1.40 per can
$
0.05 per can
1.85 per bottle
0.30 per bottle
2.40 per bottle
0.70 per bottle
MikeBeach Hut's monthly fixed costs include:
Hut rental
$
Refrigerator rental
Mike's salary
$
365
80
1,700
2,145
Total fixed costs
Requirements
1. What is Mike's Beach Hut's constraining factor? What should Mike's Beach Hut stock to
maximize profits?
2. Suppose Mike's Beach Hut refuses to devote more than 50 linear feet to any individual product.
Under this condition, how many linear feet of each drink should Mike's Beach Hut stock? How many
units of each product will be available for sale each day?
-X
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you