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Contain - It produces plastic storage bins for household storage noods. (Click the icon to view additional information Sales prices and variable costs are as
Contain - It produces plastic storage bins for household storage noods. (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 The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that contain - It 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 3,500 hours per period. Contain - It can produce 10 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $110,000 per period. Regular Large $ 8.70 $ 11.00 Sales price per unit 3.50 4.40 Variable costs per unit Requirement 1. Which product should Contain - It emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Contain-It Product Mix Analysis Regular Large Sales price per unit Variable cost per unit Contribution margin per unit Units per machine hour X Contribution margin per machine hour
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