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StoreAll produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large ( 5 0 gallon ) and Regular (
StoreAll produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large gallon and Regular 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 hours per period. The company can produce Large bins every hour compared to Regular bins in the same amount of time. Fixed expenses amount to $ per period. Sales prices and variable costs are as follows: Click the icon to view the costs.
Which product should StoreAll emphasize? Why?
To maximize profits, how many of each size bin should the company produce?
Given this product mix, what will the company's operating income be
Which product should StoreAll emphasize? Why?
Complete the product mix analysis to determine which product StoreAll should emphasize.
StoreAll
Product Mix Analysis
tableSales price per unit,Regular,Less: Variable cost per unit,,Contribution margin per unit,,Units per machine hour,,Contribution margin per machine hour,,
Data table
tablejular,LargeSales price per unit......... $$
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