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Pack it produces plastic storage bins for household storage needs. The company makes two sizes of bins Large (200 L) and Regular (140 L). Demand
Pack it produces plastic storage bins for household storage needs. The company makes two sizes of bins Large (200 L) and Regular (140 L). Demand for the product is so high that Pack It can sell as many of each size as it can produce. The company uses the same machinary to produce both sizes. The machinery can only be run for only 2,000 hours per period Pack It can produce 9 Large bins or 15 Regular bins every hour. Fixed expenses amount to $130.000 per posod Sales prices and variable costs are as follows (Click the icon to view the costs.) 1. Which product should Pack it emphasize? Why? 2. To maximize profits, how many of each size bin should Pack It produce? 3. Given this product mix, what will the company's operating income be 1. Which product should Pack It emphasize? Why? Complete the product mix analysis to determine which product Pack It should emphasize Pack Product Mix Analysis Sales price per unit Less: Variable cost per unit Contribution margin per unit Units per mactice hour Contribution margin per machine hour Help me solve this Vidan Regular Large ew the costs.) "ack It emphasize? Why? w many of each size bin should Pack It produce? what will the company's operating income be? Costs Regular Large ack It emphasize? Why? analysis to determine which product Pack It sho Sales price per unit......... $ Variable cost per unit 8.60 $ 10.80 $ 3.70 $ 4.00 Pack It anit unit Product Mix Analysis machine hour Regular Video Get more help search T Print Done - X
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