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rk Question 7, $8-9 (similar to) HW Score: 12.15%, 1.22 of 10 points Part 1 of 4 O Points: 0 of 1 Containers Plus produces
rk Question 7, $8-9 (similar to) HW Score: 12.15%, 1.22 of 10 points Part 1 of 4 O Points: 0 of 1 Containers Plus 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 3, 100 hours per period. The company can produce 10 Large bins every hour compared to 15 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 Containers Plus 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 Containers Plus emphasize? Why? Complete the product mix analysis to determine which product Containers Plus should emphasize. Containers Plus 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 hourork Question 7, S8-9 (similar to) HW Score: 12.15%, 1.22 of 10 points Part 1 of 4 O Points: 0 of 1 Containers Plus 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 3, 100 hours per period. The company can produce 10 Large bins every hour compared to 15 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 Containers Plus 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? X Data table 1. Which product should Containers Complete the product mix analysis to Regular Large Sales price per unit . . $ 8.40 $ 10.20 Pro Variable cost per unit 3.00 $ 4.00 Sales price per unit Less: Variable cost per unit Print Done Contribution margin per unit Units per machine hour Contribution margin per machine hour
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