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Storage Solutions produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large (50 gation) and Regular (35 galon) Demand

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Storage Solutions produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large (50 gation) and Regular (35 galon) Demand for the product is so high that the company can sell as many of each sixe as it can produce. The same machinery is used to produce both sizes. The machinery is available for only 3,000 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 5110,000 per period Sales prices and variable costs are as follows: Click the icon to view the costs.) 1. Which product should Storage Solutions 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 Storage Solutions emphasize? Why? Complete the product mix analysis to determine which product Storage Solutions should emphasize. Storage Solutions Product Mix Analysis Data Table Regular Large 3:10 10.50 Sales price per unit 350 420 Lens: Variable cost per unit Sales price per unit. Contribution margin per unit Variable cost per unit Units per machine hour Regular Large 105 1050 20 Contribution margin per machine hour Print Done les

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