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1) which product should containers plus emphasize? why 2)to maximize profits 3) given this product mix Containers Plus produces plastic storage bins for household storage
1) which product should containers plus emphasize? why 2)to maximize profits 3) given this product mix Containers Plus produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large (50 gallon) and Regular (35 gallon). Demand for the product is so high that the company can sell as many of each size as it can produce. The same machinery is used to produce both sizes. The machinery is available for only 2,800 hours per period. The company can produce 12 Large bins every hour compared to 17 Regular bins in the same amount of time. Fixed expenses amount to $95,000 per period. Sales prices and variable costs are as follows: E! (Click the icon to view the costs.) 1. Which product should Containers Plus emphasize? Why? 2. To maximize profits, how many of each size bin should the company produce? 3. Given this product mix, what will the company's operating income be? Data Table Regular Large Sales price per unit ........ $ 8.20 $ 10.20 Variable cost per unit ........$ 3.50 $ 4.50 Print Print Done Done Requirement 1. Which product should Containers Plus emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour Containers Plus Product Mix Analysis Regular Large Sales price per unit Variable cost per unit Contribution margin per unit Units per machine hour Contribution margin per machine hour Which product should Containers Plus emphasize? Why? Containers Plus should emphasize the production of because this product has the higher Requirement 2. To maximize profits, how many of each size bin should Containers Plus produce? (Enter a "o" for any zero amounts.) Containers Plus should spend machine hours making regular size bins, and machine hours making large size bins. Requirement 3. Given this product me, what will the company's operating income be?! Number of regular size bins per period Contribution margin per regular size bin Total contribution margin Fored costs Operating income
1) which product should containers plus emphasize? why
2)to maximize profits
3) given this product mix
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