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Please help with this one. Thanks in advance! The data table is at the bottom of the picture. Thank you! Storage Solutions produces plastic storage
Please help with this one. Thanks in advance!
The data table is at the bottom of the picture. Thank you!
Storage Solutions produces plastic storage bins for household storage needs. The company makes two stes of bine 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 3,000 hours per period. The company can produce 12 Large bins every hour compared to 16 Regular bins in the same amount of time. Fixed expenses amount to $95.000 per period. Sales prices and variable costs are as follows: (Click the icon to view the costs.) 1. Which product should Storage Solutions 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? 1. Which product should Storage Solutions emphasize? Why? Complete the product mix analysis to determine which product Storage Solutions should emphasize. Storage Solutions Product Mix Analysis Regular Large Sales price per unit Less: Variable cost per unit Contribution margin per unit Units per machine hour Contribution margin per machine hour Decision: Storage Solutions should emphasize the production of because the 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 Storage Solutions should make Number of Large bins Storage Solutions should make 3. Given the product mix determined in the previous step, calculate Storage Solutions's operating income for the period Number of blins per period Contribution margin per bin Total contribution margin Less: Foxed expenses Operating income - X Data Table Regular Large $ 8.60 S 10.90 3.20 $ 4.30 Enter any nur Sales price per unit. Variable cost per unit AM Step by Step Solution
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