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ContainAll produces plastic storage bins for household storage needs. i (Click the icon to view additional information.) Sales prices and variable costs are as follows:
ContainAll produces plastic storage bins for household storage needs. i (Click the icon to view additional information.) Sales prices and variable costs are as follows: E: (Click the icon to view the costs.) Read the requirements. Requirement 1. Which product should ContainAll emphasize? Why? Data Table More Info Complete the product mix analysis to determine the contribution margin per machine hour. ContainAll Product Mix Analysis Regular Large Sales price per unit Regular $ 8.90 $ 3.70 Large 10.80 4.10 The company makes two sizes of bins: large (50 gallon) and regular (35 gall Demand for the products is so high that containAll can sell as many of each as it can produce. The company uses the same machinery to produce both The machinery can only be run for 2,800 hours per period. ContainAll can p 11 large bins every hour, whereas it can produce 17 regular bins in the sam amount of time. Fixed costs amount to $130,000 per period. Sales price per unit Variable costs per unit Variable cost per unit Contribution margin per unit Print Done Print Done Units per machine hour Contribution margin per machine hour A Requirements Which product should ContainAll emphasize? Why? ContainAll should emphasize the production of because this product has the higher Requirement 2. To maximize profits, how many of each size bin should ContainAll produce? (Enter a "0" for any zero amounts.) ContainAll should spend machine hours making regular size bins, and machine hours making large size bins. 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? Requirement 3. Given this product mix, what will the company's operating income be? Print Done
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