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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
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: (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. Sales price per unit Variable cost per unit Container Solutions Product Mix Analysis Regular Large 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 3,500 hours per period. Container Solutions can produce 12 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $90,000 per period Contribution margin per unit Units per machine hour Contribution margin per machine hour Requirements 1. Which product should Container Solutions emphasize? Why? 2. To maximize profits, how many of each size bin should Container Solutions produce? 3. Given this product mix, what will the company's operating income be? Print Done Clear all Check answer
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