Use fundamental principle to find number of possible outcomes.

Small,Medium,Large
Orange juice, Apple Juice, Lemonade, and Milk

There are 4! ways to arrange a selection of 4 drinks

For each permutation, there are 3^4 ways to assign S,M,L

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To use the fundamental principle to find the number of possible outcomes, you need to multiply the number of options for each category. In this case, we have two categories: size (Small, Medium, Large) and type of drink (Orange juice, Apple juice, Lemonade, Milk).

First, let's count the number of options for each category:
- Size has 3 options: Small, Medium, Large.
- Type of drink has 4 options: Orange juice, Apple juice, Lemonade, Milk.

Now, to find the total number of possible outcomes, simply multiply the number of options for each category:
Total number of outcomes = Number of options for Size × Number of options for Type of drink
= 3 (sizes) × 4 (types of drinks)
= 12 possible outcomes.

Therefore, there are 12 possible outcomes when considering the options of size and type of drink.