Consider Storage Solutions from S8-9. Assume that demand for Regular bins is limited to 36,000 units and
Question:
In S8-9
________________________________________________Regular ____ Large
Sales price per unit ................................................................ $8.10............$10.50
Variable cost per unit ............................................................ $3.50.............$ 4.20
1. How many of each size bin should the company make now?
2. Given this product mix, what will be the company's operating income?
3. Explain why the operating income is less than it was when the company was producing its optimal product mix.
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Req 1 Storage Solutions should emphasize the production of regular size bins because they are more p...View the full answer
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