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Homework: HW - Chapter 25 Score: 0 of 1 pt 5 of 12 (5 complete) HW Score: 19.34%, 525-5 (similar to) Question Data Table Storage
Homework: HW - Chapter 25 Score: 0 of 1 pt 5 of 12 (5 complete) HW Score: 19.34%, 525-5 (similar to) Question Data Table Storage Solutions produces plastic storage bins for household storage needs. (Click the icon to view additional information.) Regular Large $ 8.50 $ 10.10 Sales price per unit Variable costs per unit 3.60 4.60 Requirement 1. Which product should Storage Solutions emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Print Done Storage Solutions Product Mix Analysis Regular Large More Info Sales price per unit Variable cost per unit Contribution margin per unit Units per machine hour x The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that Storage 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. Storage Solutions can produce 9 large bins every hour, whereas it can produce 16 regular bins in the same amount of time. Fixed costs amount to $110,000 per period. Contribution margin per machine hour Print Done Enter any number in the edit fields and then click Check
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