Data Table Regular Large Sales price per unit .........$ 8.70 $ 10.10 Variable cost per unit ....... $ 3.40 $ 4.40 Print Done Contain - It 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 is so high that the company can sell as many of each size as it can produce. The same machinery is used to produce both sizes. The machinery is available for only 3.400 hours per period. The company can produce 10 Large bins every hour compared to 15 Regular bins in the same amount of time. Fixed expenses amount to $105,000 per period. Sales prices and variable costs are as follows: (Click the icon to view the costs.) 1. Which product should Contain-It emphasize? Why? 2. To maximize profits, how many of each size bin should the company produce? 3. Given this product mix, what will the company's operating income be? Contnbution margin per machine hour Decision: Contain - It should emphasize the production of Regular bins because the contribution margin per machine hour is higher. 2. To maximize profits, how many of each size bin should the company produce? (If there are zero machine hours allocated to a bin size, enter in the input box.) 3,400 machine hours making Regular size bins and machine hours making Contain-It should spend Large size bins 3. Given the product mix determined in the previous step, calculate Contain - It's operating income for the period. Number of bins per period Contribution margin per bin Total contribution margin Less: Fixed expenses Operating income Enter any number in the edit fields and then click Check Answer. All parts showing Clear All Check