Storage Solutions produces plastic Morage bine for househo sorge needs. The company makes two sizes of bins Large gallon) and Regular on Demand for the products that the company can to many of each size as it can produce. The same machinery is used to produce both sizes. The machinery is well for only 1.300 hours per period. The company can produce 10 Large bine very hour compared to 15 Regular bin in the same amount of time and expenses amount to $120,000 per period Sales prices and variations are as follows: all (Click the icon to view the costs) 1. Which product should Storage Solutions emphasize? Why? 2. To maximize profits, how many of the should the company produce? 3. Given the product , what w e company's operating coster Product Mix Analysis 0 Data Table Regular Sales priceperunt S 10.20 Los Variable cost per unit Sales price per unit $ 8.20 $ 10:20 Contribution margin per unit Variable cost per unit $ 3.30 3 430 Units per machine hour Contribution margin per machine hour Done Decision Storage Solutions should emphasize the production of Regular bir because the contribution margin per machine hour is higher 2. To maximize profes, how many of each size bin should the company produce there are machine hours allocated to a binierter in the input box Storage Solutions should spend 300 machine hours making Regular size bins and machine hours making Large size in 3. Given the product mix determined in the previous step, calculate Storage Solutions's operating income for the period Number of ins per period Contribution marpin per bin Total contribution margin Les Fred expenses 10.20 4.90 5.90 Sales price per unit Less: Variable cost per unit Contribution margin per unit Units per machine hour Contribution margin per machine hour $ 73,50 Decision: Storage Solutions should emphasize the production of Regular bins because the contribution margin per machine hour is higher. 2. To maximize profits, how many of each size bin should the company produce? (If there are zero machine hours allocated to a bin size, enter in the Storage Solutions should spend 3,300 machine hours making Regular size bins and machine hours making Large size bins 3. Given the product mix determined in the previous step, calculate Storage Solutions's operating income for the period. Number of bins per period Contribution margin per bin Total contribution margin Less: Fixed expenses Operating income