Response to the following problem:
Each morning, Max Imery stocks the drink case at Max's Beach Hut in Myrtle Beach, South Carolina. Max's has 100 linear feet of refrigerated display space for cold drinks. Each linear foot can hold either six 12-ounce cans or four 20-ounce plastic or glass bottles. Max's sells three types of cold drinks:
• Coca-Cola in 12-oz. cans, for $1.50 per can
• Coca-Cola in 20-oz. plastic bottles, for $1.75 per bottle
• SoBe in 20-oz. glass bottles, for $2.20 per bottle
Max's pays its suppliers:
• $0.25 per 12-oz. can of Coca-Cola
• $0.40 per 20-oz. bottle of Coca-Cola
• $0.75 per 20-oz. bottle of SoBe
Max's monthly fixed expenses include:
Hut rental....................$ 375
Refrigerator Rental............75
Max's salary.................1,550
Total fixed expenses........$2,000
Max's can sell all the drinks stocked in the display case each morning.
1. What is Max's constraining factor? What should Imery stock to maximize profits?
2. Suppose Max's refuses to devote more than 60 linear feet to any individual product. Under this condition, how many linear feet of each drink should Imery stock? How many units of each product will be available for sale each day?