*** #3 Making product mix decisions ContainAll 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 products is so high that ContainAll can sell as many of each size as it can produce. The company uses the same machinery to produce both sizes. The machinery can be run for only 2,800 hours per period. ContainAll can produce 11 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $130,000 per period. Sales prices and variable costs are as follows: 3. 0 4 .10 Requirements 1. Which product should ContainAll emphasize? Why? 2. To maximize profits, how many of each size bin should ContainAll produce? 3. Given this product mix, what will the company's operating income be? *** # 4 Making outsourcing decisions Eclipse Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: DM Van Overhead Another company has offered to sell Eclipse Systems the switch for $20.00 per unit. If Eclipse Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable. Prepare an outsourcing analysis to determine whether Eclipse Systems should make or buy the switch