Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

K Contain - It produces plastic storage bins for household storage needs. i (Click the icon to view additional information.) Requirement 1. Which product should

K Contain - It produces plastic storage bins for household storage needs. i (Click the icon to view additional information.) Requirement 1. Which product should Contain - It emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Contain-It Product Mix Analysis Fived cocte Regular Large Sales price per unit Variable cost per unit Contribution margin per unit Units per machine hour Contribution margin per machine hour Which product should Contain - It emphasize? Why? Contain-It should emphasize the production of because this product has the higher Requirement 2. To maximize profits, how many of each size bin should Contain - It produce? (Enter a "0" for any zero amounts.) machine hours making regular size bins, and Contain-It should spend machine hours making large size bins. Requirement 3. Given this product mix, what will the company's operating income be? Number of regular size bins per period Contribution margin per regular size bin Total contribution margin Xx Sales prices and variable costs are as follows: (Click the icon to view the costs.) Read the requirements.
image text in transcribed
image text in transcribed
image text in transcribed
Cortain - Il produoss plaste storage bins for household siomye noeds (i) (Click the icon to view adbionat informaton) Solos grices and varsitle costs aye as lollow: Ifll (Click the icon to vilew the cothe? Anad the requitements Requirement 1. Which product shoud Contain-1F emphayzo? Wty? Cemplete the product mix analydes to doterrtine the contribution murgn por machine hout. Which product should Contarn - 1 emphasite? Why? Contan - Ht chould emphasize the production of because this groduct has the higher Requirement 2. To maximite profits, how many of esch sizo bin should Contan - Rproduco? (Entor a "O" for any zoro amounts) Containale should spond machine hours making regular sine bins and machine hours making large sire bins Reguirement 3 , Gven this product mx whyt well the compame seceraing incrma be? More info The company makes two sizes of bins: large ( 50 gallon) and regular ( 35 gallon). Demand for the products is so high that Contain - It 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 3,200 hours per period. Contain - It can produce 10 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $100,000 per period. Data table

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions