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StoreAway 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 as it could produce. The same machinery is used to produce both sizes. The machinery is available for only 2,800 hours per period. The company can produce 12 large bins every hour compared to 16 regular bins in the same amount of time. Fixed expenses amount to $120,000 per period. Please see product mix data below. Assume that demand for Regular bins is limited to 38,400 units and demand for Large bins is limited to 22,000 units.

Product Mix Analysis: image text in transcribed Operating Income from Optimal Product Mix: image text in transcribed Part 1: image text in transcribed Part 1 Fill-In-the-Blank Word Options: should emphasize the production of (large, regular) size bins since they are (just as profitable, less than, more than) the (large, regular) size bins

Part 2: image text in transcribed Part 2 Operating Income from Product Mix Drop-Down Word Options: First Line:

image text in transcribed Second and Third Line: image text in transcribed Part 3: image text in transcribed

StoreAway Product Mix Analysis Regular Large Sales price per unit Less: Variable cost per unit Contribution margin per unit Units per machine hour Contribution margin per machine hour $8.40 $ 10.20 4.40 5.80 12 $86.40 $ 69.60 3.00 5.40 16 X

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