StoreAll produces plastic storage birs tor household storage needs. Sales prices and variable costs are as follow (5) (Cirk the iconsto view additional infarmation) Read the poquements Requirement 1 Which product thould StoreAll emphasize? Why? Complete the product m as andysis to deternine the contribution margin per machine hour 1. Which product should StoreAll emphasize? Why? 2. To maximize profits, how many of each size bin should StoreAll produce? 3. Given this product mix, what will the company's operating income be? \begin{tabular}{lccc} \hline & \multicolumn{2}{c}{ Regular } & Large \\ \hline Sales price per unit & $ & 8.60 & $11.00 \\ Variable costs per unit & & 3.40 & 4.70 \\ \hline \end{tabular} The company makes two sizes of bins: large ( 50 gallon) and regular ( 35 gallon). Demand for the products is so high that StoreAll 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. StoreAll can produce 10 large bins every hour, whereas it can produce 15 regular bins in the same amount of time. Fixed costs amount to $105,000 per period. StoreAll produces plastic storage birs tor household storage needs. Sales prices and variable costs are as follow (5) (Cirk the iconsto view additional infarmation) Read the poquements Requirement 1 Which product thould StoreAll emphasize? Why? Complete the product m as andysis to deternine the contribution margin per machine hour 1. Which product should StoreAll emphasize? Why? 2. To maximize profits, how many of each size bin should StoreAll produce? 3. Given this product mix, what will the company's operating income be? \begin{tabular}{lccc} \hline & \multicolumn{2}{c}{ Regular } & Large \\ \hline Sales price per unit & $ & 8.60 & $11.00 \\ Variable costs per unit & & 3.40 & 4.70 \\ \hline \end{tabular} The company makes two sizes of bins: large ( 50 gallon) and regular ( 35 gallon). Demand for the products is so high that StoreAll 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. StoreAll can produce 10 large bins every hour, whereas it can produce 15 regular bins in the same amount of time. Fixed costs amount to $105,000 per period