Container Solutions

produces plastic storage bins for household storage needs.

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Sales prices and variable costs are as follows:

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Container Solutions produces plastic storage bins for household storage needs (Click the icon to view additional information.) Sales prices and variable costs are as follows: B (Click the icon to view the costs.) Read the requirements Requirement 1. Which product should Container Solutions emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Container Solutions Product Mix Analysis Regular Large Sales price per unit Variable cost per unit Contribution margin per unit Units per machine hour Contribution margin per machine hour Which product should Container Solutions emphasize? Why? Container Solutions should emphasize the production of because this product has the higher Enter any number in the edit fields and then continue to the next question. Which product should Container Solutions emphasize? Why? Container Solutions should emphasize the production of because this product has the higher Requirement 2. To maximize profits, how many of each size bin should Container Solutions produce? (Enter a "O" for any zero amounts.) Container Solutions should spend machine hours making regular size bins, and machine hours making large size bins. Requirement 3. Given this product mix, what will the company's operating income be? Number of regular size bins per period Contribution margin per regular size bin Total contribution margin Fixed costs Operating income Enter any number in the edit fields and then continue to the next question. i More Info The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that Container Solutions 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 3,600 hours per period. Container Solutions can produce 10 large bins every hour, whereas it can produce 15 regular bins in the same amount of time. Fixed costs amount to $125.000 per period. Print Print Done ] Done Data Table Sales price per unit Variable costs per unit Regular $ 8.10 $ 3.30 Large 10.90 4.10 Print Print Done Done