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Regular Large Sales price per unit. . $8.30 $ 10.90 Variable cost per unit . . . . . . .$ 3.50$ 4.10 Store- It
Regular Large Sales price per unit. . $8.30 $ 10.90 Variable cost per unit . . . . . . .$ 3.50$ 4.10 Store- It 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 slzes. The machinery is avallable for only 3,500 hours per period. The company can produce 11 Large bins every hour compared to 16 Regular bins In the same amount of time. Fixed expenses amount to $120,000 per period. Sales prices and variable costs are as follows: (Click the icon to view the costs.) 1. Which product should Store -It emphasize? Why? 2. To maximize profits, how many of each size bin should the company produce? 3. Glven thls product mlx, what wll the company's operating Income be? Complete the product mx analysis to determine which product Store- It should emphasize Store-lt 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
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