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Requirement 1. Which product should Containers Plus emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour Containers Plus
Requirement 1. Which product should Containers Plus emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour Containers Plus Product Mix Analysis Regular Large Sales price per unt Variable cost par und Contribution margin per unit More info The company makes two sizes of bins large (50 gallon) and regular (5 gafon) Demand for the products o high that Containers Plus can sell as many of ach size as it can produce. The company sees the same machinery to produce both sizes The machinery can only be run for 3,200 hours per period. Containers Plus can produce 11 large bins every hour, whereas it can produce 15 regular bins in the same amount of me Fixed couts amount to $110.000 per period Print Done Units per machine hour Contribution margin per machine hour Data table Sales price per unit Variable costs per unit Regular Large $ 8.90 $ 10.00 350 479 Print Done X Requirements 1. Which product should Containers Plus emphasize? Why? 2. To maximize profits, how many of each size bin should Containers Plus produce? 3. Given this product mix, what will the company's operating income be? Print Done
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