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Store - It produces plastic storage bins for household storage needs. (Click the icon to view additional information.) Sales prices and variable costs are as
Store - It produces plastic storage bins for household storage needs. (Click the icon to view additional information.) Sales prices and variable costs are as follows: (Click the icon to view the costs.) Read the requirements. 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. 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 3,500 hours per period. Store - It can produce 9 large bins every hour, whereas it can produce 16 regular bins in the same amount of time. Fixed costs amount to $105,000 per period. Data table
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