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Store All produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large (50 gallon) and Regular (35 gallon). Demand
Store All 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 2,800 hours per period. The company can produce 9 Large bins every hour compared to 17 Regular bins in the same amount of time. Fixed expenses amount to $110.000 per period. Sales prices and variable costs are as follows: (Click the icon to view the costs.) 1. Which product should Store All 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? i Data Table 1. Which product should Store All emphasize? Why? Complete the product mix analysis to determine which product Store All should emphasize Store All Product Mix Analysis Regular Large Regular Large Sales price per unit... ... ... $ 9.00 $ 10.10 Variable cost per unit ....... $ 3.20 $ 4.20 Sales price per unit Less: Variable cost per unit Contribution margin per unit Units per machine hour Print Done x Contribution margin per machine hour Enter any number in the edit fields and then click Check Answer. ? 3 parts remaining Clear All Check
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