Storage Solutions 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 $3,500$ hours per period. The company can produce $10$ Large bins every hour compared to $16$ Regular bins in the same amount of time. Fixed expenses amount to $$95,000$ per period. Sales prices and variable costs are as follows:

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

Which product should Storage Solutions emphasize? Why?

To maximize profits, how many of each size bin should the company produce?

Given this product mix, what will the company's operating income be$?$

Which product should Storage Solutions emphasize? Why?

Complete the product mix analysis to determine which product Storage Solutions should emphasize.

Storage Solutions

Product Mix Analysis

$\backslash$table$[[$Sales price per unit,,Regular,Large$],[,,],[$Less: Variable cost per $4,,,],[$Contribution margin per,,,$],[$Units per machine hour,$x,,]]$

Decision: Storage Solutions should emphasize the production of $$ because the $$ is higher.

$2.$ To maximize profits, how many of each size bin should the company produce? $($Complete all input fields. Enter a $"0"$ if no bins should be produced.$)$

Number of Regular bins Storage Solutions should make

Number of Large bins Storage Solutions should make $$

$3.$ 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 $$No