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Store - It produces plastic storage bins for household storage needs. i (Click the icon to view additional information.) Requirement 1. Which product should
Store - It produces plastic storage bins for household storage needs. i (Click the icon to view additional information.) Requirement 1. Which product should Store - It emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. Sales price per unit Variable cost per unit Contribution margin per unit Data table Sales prices and variable costs are as follows: (Click the icon to view the costs.) Read the requirements. Store-It Product Mix Analysis Regular Large Regular Large Sales price per unit Variable costs per unit $ 8.80 $ 10.70 3.70 4.40 Units per machine hour Contribution margin per machine hour Print Done 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 3,200 hours per period. Store - It can produce 9 large bins every hour, whereas it can produce 15 regular bins in the same amount of time. Fixed costs amount to $85,000 per period. Print Done
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