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ContainAll produces plastic storage bins for household storage needs. Sales prices and variable costs are as follows: 0 (Click the icon to View additional information.)
ContainAll produces plastic storage bins for household storage needs. Sales prices and variable costs are as follows: 0 (Click the icon to View additional information.) ' ' g (Click the icon to View the costs.) Read the muirements. Requirement 1. Which product should ContainAll emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. ContainAll Product Mix Analysis Regular Large Sales price per unit Variable cost per unit Contribution margin per unit Units per machine hour x x Contribution margin per machine hour More info The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that ContainAll 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 2,900 hours per period. ContainAll can produce 12 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $120,000 per period. Data table Regular Large Sales price per unit 55 8.50 $ 11.00 Variable costs per unit 3.60 4.10 Requirements 1. Which product should ContainAlI emphasize? Why? 2. To maximize prots, how many of each size bin should ContainAII produce? 3. Given this product mix, what will the company's operating income be
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