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counting II ork 3 K Question 16, S8-10 (final answer) Part 1 of 3 Chegg Search Grace Morgan 09/17/22 7:38 PM HW Score: 80.57%,
counting II ork 3 K Question 16, S8-10 (final answer) Part 1 of 3 Chegg Search Grace Morgan 09/17/22 7:38 PM HW Score: 80.57%, 40.29 of 50 points O Points: 0 of 3 Save Storage Solutions produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large (50 gallon) and Regular (35 gallon). Demand for the product used to be so high that the company could sell as many of each size asd produce. The same machinery is used to produce both sizes. The machinery is available for only 3,200 hours per period. The company can produce 9 Large bins every hour compared to 12 Regular bins in the same amount of time. Fixed expenses amount to $110,000 per period. Product mix data follows: (Click the icon to view the product mix analysis) (Click the icon to view the operating income from the optimal product mix) Assume that demand for Regular bins is limited to 37.500 units and demand for Large bins is limited to 21,000 units. 1. How many of each size bin should the company make now? 2. Given this product mix, what will be the company's operating income? 3. Explain why the operating income is less than it was when the company was producing its optimal product mix 1. How many of each size bin should the company make now? Decision: Storage Solutions should produce Regular size bins and t Large size bins
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