ork Question 7, $8-9 (similar to) HW Score: 67.86%, 6.79 of 10 points Part 4 of 4 Points: 0.74 of 1 Save Containers Plus 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, 100 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 $120,000 per period. Sales prices and variable costs are as follows; (Click the icon to view the costs.) 1. Which product should Containers Plus 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? Containers Plus Product Mix Analysis Regular Large Sales price per unit S 8 40 $ 10.20 Less: Variable cost per unit 3.00 4100 Contribution margin per unit 5.40 6 20 15 Units per machine hour 10 X $ 81.00 $ 62.00 Contribution margin per machine hour Decision: Containers Plus 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? (Complete all input fields, Enter a "0" if no bins should be produced.) Number of Regular bins Containers Plus should make 46,500 Number of Large bins Containers Plus should make 3. Given the product mix determined in the previous step, calculate Containers Plus's operating income for the period.Containers Plus 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 3,100 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 $120,000 per period. Sales prices and variable costs are as follows: (Click the icon to view the costs.) 1. Which product should Containers Plus 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? Units per machine hour 15 Contribution margin per machine hour 81.00 $ 62.00 Decision: Containers Plus 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? (Complete all input fields. Enter a "0" if no bins should be produced.) Number of Regular bins Containers Plus should make 46,500 Number of Large bins Containers Plus should make 0 3. Given the product mix determined in the previous step, calculate Containers Plus's operating income for the period Number of bins per period Contribution margin per bin Total contribution margin $ 251,100 120,000 Less: Fixed expenses $ 131 100 Operating incomeork Question 7, S8-9 (similar to) HW Score: 67.86%, 6.79 of 10 points Part 4 of 4 Points: 0.74 of 1 Save Containers Plus 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, 100 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 $120,000 per period. Sales prices and variable costs are as follows: (Click the icon to view the costs.) 1. Which product should Containers Plus emphasize? Why? 2. To maximize profits, how many of each size bin should the company produce? 3. Given this X Data table Units per m Contribution Regular Large Sales price per unit $ 8.40 $ 10.20 Decision: C Variable cost per unit $ 3.00 $ 4.00 e contribution margin per machine hour is higher. 2. To maxim ate all input fields. Enter a "0" if no bins should be produced.) Number of Print Done Number of 3. Given the rating income for the period. Number of bins per period Contribution margin per bin Total contribution margin $ 251,100 120,000 Less: Fixed expenses $ 131,100 Operating income