Reference no: EM133158472

Question - Each morning, Store24's drink case is stocked. Each Store24 has 100 linear feet of refrigerated display space for cold drinks and each linear foot can hold either five 16-ounce or four 20-ounce plastic or glass bottles.

Store24 sells three types of water:

1--Plain in 16-ounce bottle for $1.55 per bottle

2--Sparkling in 20-ounce bottle for $1.65 per bottle

3--Fruit-Flavored in 20-ounce bottle for $2.25 per bottle

Store24 pays its suppliers:

1--$.25 per 16-ounce bottle of plain water

2--$.3 per 20-ounce bottle of sparkling water

3--$.7 per 20-ounce bottle of fruit-flavored water

Store24 can sell all the drinks stocked in the refrigerated display case each day.

Required -

1--What is the contribution margin per bottle of each product?

2--What is the contribution margin per linear foot of shelf space for each product?

3--What is Store24's constraining factor or resource?

4--What should Store24 stock to maximize profits?

5--Store24 has decided not to devote more than 65 linear feet to any individual product. Under this condition, how many linear feet of each drink should Store24 stock? How many units of each type of bottled water will e available for sale each day?