company can produce $11$ Large bins every hour compared to $17$ Regular bins in the same amount of time. Fixed expenses amount to $$95,000$ per period. Product mix data follows:

View the product mix analysis. View the operating income from the optimal product mix.

Assume that demand for Regular bins is limited to $36,000$ units and demand for Large bins is limited to $20,000$ units.

How many of each size bin should the company make now?

Given this product mix, what will be the company's operating income?

Explain why the operating income is less than it was when the company was producing its optimal product mix.

How many of each size bin should the company make now?

This is a product mix decision. First determine which bin size ContainAll should emphasize.

ContainAll should emphasize the production of Regular size bins since they are more profitable than the Large size bins.

Operating income from optimal product mix ${?}^{-}$