Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

525-5 (similar to) Question Help ContainAll produces plastic storage bins for household storage needs. (Click the icon to view additional information.) Sales prices and variable

image text in transcribed

525-5 (similar to) Question Help ContainAll produces plastic storage bins for household storage needs. (Click the icon to view additional information.) Sales prices and variable costs are as follows: (Click the icon to view the costs.) Read the requirements Requirement 1. Which product should ContainAll emphasize? Why? i More Info Complete the product mix analysis to determine the contribution margin per machine hour. i Data Table ContainAll Product Mix Analysis Regular 8.20 The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that contain All can sell as many of each size as it can produce. The company uses the same machinery to produce both sizes. The machinery can only be run for 2.700 hours per period. ContainAll can produce 11 large bins every hour, whereas it can produce 16 regular bins in the same amount of time. Fixed costs amount to $65,000 per period. Large 10.30 4.40 Sales price per unit Variable costs per unit Regular Large $ 8.20 $ 10.30 3.70 4.40 Sales price per unit Variable cost per unit Contribution margin per unit 3.70 4.50 5.90 16x 11 Units per machine hour Print Print Done Done $ 72.00 $ 64.90 Contribution margin per machine hour Which product should ContainAll emphasize? Why? ContainAll should emphasize the production of regular bins because this product has the higher contribution margin per machine hour. Requirement 2. To maximize profits, how many of each size bin should ContainAll produce? (Enter a "O" for any zero arrounts.) regular size bins, and ContainAll should spend machine hours making machine hours making large size bins

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Audit Of Treasury And Cash Management

Authors: Badr Bentalha

1st Edition

B0BM3R6WG7, 979-8363213779

More Books

Students also viewed these Accounting questions

Question

Explain the various collection policies in receivables management.

Answered: 1 week ago

Question

What are the main objectives of Inventory ?

Answered: 1 week ago

Question

Explain the various inventory management techniques in detail.

Answered: 1 week ago