Store - It produces plastic storage bins for household storage needs. Sales prices and variable costs are as follows: (Click the icon to view additional information.) (Click the icon to view the costs.) More info The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that Store - It can sell as many of each size as it can produce. The company uses the same machinery to produce both sizes. The machinery can only be run for 3,000 hours per period. Store - It can produce 11 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $110,000 per period. Data table Requirements 1. Which product should Store - It emphasize? Why? 2. To maximize profits, how many of each size bin should Store - It produce? 3. Given this product mix, what will the company's operating income be? Requirement 1. Which product should Store - It emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Which product should Store - It emphasize? Why? Store - It should emphasize the production of because this product has the higher Requirement 2. To maximize profits, how many of each size bin should Store - It produce? (Enter a "0" for any zero amounts.) Store-It should spend machine hours making regular size bins, and machine hours making large size bins. Store - It produces plastic storage bins for household storage needs. Sales prices and variable costs are as follows: (Click the icon to view additional information.) (Click the icon to view the costs.) More info The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that Store - It can sell as many of each size as it can produce. The company uses the same machinery to produce both sizes. The machinery can only be run for 3,000 hours per period. Store - It can produce 11 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $110,000 per period. Data table Requirements 1. Which product should Store - It emphasize? Why? 2. To maximize profits, how many of each size bin should Store - It produce? 3. Given this product mix, what will the company's operating income be? Requirement 1. Which product should Store - It emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Which product should Store - It emphasize? Why? Store - It should emphasize the production of because this product has the higher Requirement 2. To maximize profits, how many of each size bin should Store - It produce? (Enter a "0" for any zero amounts.) Store-It should spend machine hours making regular size bins, and machine hours making large size bins
