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StoreAway produces plastic storage bins for household storage needs, (Click the icon to view additional information.) Sales prices and variable costs are as follows:
StoreAway 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 Requirement 1. Which product should StoreAway emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. StoreAway Product Mix Analysis Data table Sales price per unit Variable cost per unit Regular Large Regular Large Sales price per unit Variable costs per unit $ 8.00 $ 10.10 3.70 4.30 Contribution margin per unit Units per machine hour Contribution margin per machine hour Which product should StoreAway emphasize? Why? StoreAway should emphasize the production of because this product has the higher Print Done Requirement 2. To maximize profits, how many of each size bin should StoreAway produce? (Enter a "D" for any zero amounts.) StoreAway should spendi machine hours making machine hours making i large size bins regular size bins, and Requirements Requirement 3. Given this product mix, what will the company's operating income be? Number of regular size bins per period Contribution margin per regular size bin Total contribution margin Fixed costs Operating income 1. Which product should StoreAway emphasize? Why? 2. To maximize profits, how many of each size bin should StoreAway produce? 3. Given this product mix, what will the company's operating income be? Print Done
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