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Contain - It produces plastic storage bins for household storage needs. Sales prices and variable costs are as follows: (Click the icon to view additional
Contain - It produces plastic storage bins for household storage needs. Sales prices and variable costs are as follows: (Click the icon to view additional information.) (Click the icon to view the costs.) Read the Requirement 1. Which product should Contain - It emphasize? Why? More info Complete the product mix analysis to determine the contribution margin per machine hour. 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 3,000 hours per period. Contain - It can produce 9 large bins every hour, whereas it can produce 16 regular bins in the same amount of time. Fixed costs amount to $120,000 per period. Requirements 1. Which product should Contain - It emphasize? Why? 2. To maximize profits, how many of each size bin should Contain - It produce? 3. Given this product mix, what will the company's operating income be
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