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Contain - It produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large (50 gallon) and Regular ( 35 gallon). Dernand for the product used to be so high that the compiany 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 2,900 hours per period. The company can produce 10 Large bins every hour compared to 12 Regular bins in the same amount of time. Fixed expenses amount to $115,000 per period. Product mix data follows: (Click the icon to view the product mix analysis.) (Click the icon to view the operating income from the optimal product mix.) Assume that demand for Regular bins is limited to 33,600 units and demand for Large bins is limited to 23,000 units. 1. How many of each size bin should the company make now? 2. Given this product mix, what will be the company's operating income? 3. Explain why the operating income is less than it was when the company was producing its optimal product mix. Contain-lt Product Mix Analysis Sales price per unit Less: Variable cost per unit Contribution margin per unit Units per machine hour Contribution margin per machine hour t mix. Print Done sizes of bins: Large ould sell as many of is available for only ar bins in the same ome from the optimal do 23,000 units. timal product mix. 1. How many of each size bun should the company make now? This is a prodict mix decision. First determine which bin size Contain - it should emphasize. Contain - It should emphasize the producton of Decisiork Contamit should produce size bins since thicy are the size bins. 2. Given the product mix determined above. calculate the company's operating income. 2. Given the product mix detemined above, calculate the company's opeiating income: 3. Explain why the operating income is less than it was when the company was producing its optimal product mix. Operating income is less than it was when Contain - It was producing its optimal product mix because: A. the compary had to give up some of the Regular bin contribution margin per machine hour in order to produce Large bi B. the compary had to produce fewer. Regular size bins to match demand for these bins C. A and B D. None of the above