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please help! StoreAll Company produces plastic storage bins for household storage needs. View the additional information. Sales prices and variable costs are as follows: View
please help!
StoreAll Company produces plastic storage bins for household storage needs. View the additional information. Sales prices and variable costs are as follows: View the sales prices and variable costs. Read the requirements. Requirement 1. Which product should StoreAll Company emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Calculator Additional Information The company makes two sizes of bins: large ( 50 gallon) and regular ( 35 gallon). Demand for the products is so high that StoreAll Company 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 hGurs per period. StoreAll Company can produce 12 large bins every hour, whereas it can produce 15 regular bins in the same amount of time. Fixed costs amount to $130,000 per period. Sales Prices and Variable Costs Requirements 1. Which product should StoreAll Company emphasize? Why? 2. To maximize profits, liow many of each size bin should StoreAll Company produce? 3. Given this product mix, what will the company's operating income be Step by Step Solution
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