Each morning, Joel McKnight stocks the drink case at Joel's Beach Hut in Myrtle Beach, South Carolina. The drink case has 125 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles. (Click the icon to view the information on the cold drinks.) Joel's Beach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. Requirement 1. What is Joel's Beach Hut's constraining factor? What should Joel stock to maximize profits? The constraining factor is Data table Joel's Beach Hut sells three types of cold drinks: 1. Yummy Time in 12-oz. cans for $1.45 per can 2. Yummy Time in 20-oz. bottles for $1.85 per bottle 3. Right-Cola in 20-oz. bottles for $2.30 per bottle Joel's Beach Hut pays its suppliers: 1. $0.10 per 12-oz. can of Yummy Time 2. $0.40 per 20-oz. bottle of Yummy Time 3. $0.55 per 20-oz. bottle of Right - Cola Joel's Beach Hut's monthly fixed costs include: Hut rental $ Refrigerator rental Joel's salary Total fixed costs 390 75 1,800 $ 2,265 X

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Each morning, Joel McKnight stocks the drink case at Joel's Beach Hut in Myrtle Beach, South Carolina. The drink case has 125 linear feet of refrigerated drink
space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles.
(Click the icon to view the information on the cold drinks.)
Joel's Beach Hut can sell all the drinks stocked in the display case each morning.
Read the requirements.
Requirement 1. What is Joel's Beach Hut's constraining factor? What should Joel stock to maximize profits?
The constraining factor is
Data table
Joel's Beach Hut sells three types of cold drinks:
1. Yummy Time in 12-oz. cans for $1.45 per can
2. Yummy Time in 20-oz. bottles for $1.85 per bottle
3. Right - Cola in 20-oz. bottles for $2.30 per bottle
Joel's Beach Hut pays its suppliers:
1. $0.10 per 12-oz. can of Yummy Time
2. $0.40 per 20-oz. bottle of Yummy Time
3. $0.55 per 20-oz. bottle of Right - Cola
Joel's Beach Hut's monthly fixed costs include:
Hut rental
$
Refrigerator rental
Joel's salary
Total fixed costs
Requirements
390
75
1,800
2,265
Print
1. What is Joel's Beach Hut's constraining factor? What should Joel stock to maximize profits?
2. Suppose Joel's Beach Hut refuses to devote more than 85 linear feet to any individual product. Under
this condition, how many linear feet of each drink should Joel's stock? How many units of each
product will be available for sale each day?
X
Done
X
Transcribed Image Text:Each morning, Joel McKnight stocks the drink case at Joel's Beach Hut in Myrtle Beach, South Carolina. The drink case has 125 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles. (Click the icon to view the information on the cold drinks.) Joel's Beach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. Requirement 1. What is Joel's Beach Hut's constraining factor? What should Joel stock to maximize profits? The constraining factor is Data table Joel's Beach Hut sells three types of cold drinks: 1. Yummy Time in 12-oz. cans for $1.45 per can 2. Yummy Time in 20-oz. bottles for $1.85 per bottle 3. Right - Cola in 20-oz. bottles for $2.30 per bottle Joel's Beach Hut pays its suppliers: 1. $0.10 per 12-oz. can of Yummy Time 2. $0.40 per 20-oz. bottle of Yummy Time 3. $0.55 per 20-oz. bottle of Right - Cola Joel's Beach Hut's monthly fixed costs include: Hut rental $ Refrigerator rental Joel's salary Total fixed costs Requirements 390 75 1,800 2,265 Print 1. What is Joel's Beach Hut's constraining factor? What should Joel stock to maximize profits? 2. Suppose Joel's Beach Hut refuses to devote more than 85 linear feet to any individual product. Under this condition, how many linear feet of each drink should Joel's stock? How many units of each product will be available for sale each day? X Done X
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