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Store - It produces plastic storage bins for household storage needs. The company makes two sizes of bins Large (50 gallon) and Regular (35 gallon).
Store - It 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 same machinery is used to produce both sizes. The machinery is available for only 3,300 hours per period. The company can produce 11 Large bins every hour compared to 16 Reg per period. Sales prices and variable costs are as follows B (Click the icon to view the costs) 1. Which product should Store - It emphasize? Why? 2. To maximize profits, how many of each size bin should the company produce? 3. Given this produci mix, what will the company's operating income be? 1. Which product should Store - It emphasize? Why? Complete the product mix analysis to determine which product Store - It should emphasize Store-It Product Mix Analysis Regular Large Sales price per unit Less: Variable cost per unit Contribution margin per unit Units per machine hour X X Contribution margin per machine hour Part 1 of 4 Save O Points: 0 of 11 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 he company can produce 11 Large bins every hour compared to 16 Regular bins in the same amount of time. Fixed expenses amount to $105,000 W ny produce? be? - X X Data table Regular Large $ ce - It should emphasize 8.20 $ 10.70 Sales price per unit. S 3.30 $ 4.20 Variable cost per unit Large Print Done X
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