produces plastic storage bins for household storage needs. The company makes two sizes of$$ bins: Large$(50$ gallon$)$ and Regular$(35$ gallon$).$ Demand for the product is so high that the company can sell as many of each size as it can produce. The same machinery is used to produce both sizes. The machinery is available for only $2$ comma $800$ hours per period. The company can produce $11$ Large bins every hour compared to $17$ Regular bins in the same amount of time. Fixed expenses amount to $ $95$ comma $000$ per period. Sales prices and variable costs are as$$ follows:

LOADING...$($Click the icon to view the$$ costs.$)$

$1.$ Which product should Contain minus It $$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$?$

Question content area bottom

Part $1$

$1.$ Which product should Contain minus It $$emphasize$?$ Why?

Complete the product mix analysis to determine which product Contain minus It should emphasize.

Contain$-$It

Product Mix Analysis

Regular

Large

Sales price per unit

Less: Variable cost per unit

Contribution margin per unit

Units per machine hour

x

x

Contribution margin per machine hour