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Storeaway produces plastic storage bins for household storage needs. The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for
Storeaway produces plastic storage bins for household storage needs. The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the product used to be so high that the company could sell as many of each size as it could produce. The same machinery is used to produce both sizes. The machinery is avaible for only 2,800 hours per period. The company can produce 12 Large bins every hour compared to 16 Regular bins in the same amount of time. Fixed expenses amount to $120,000 per period. Product mix data follows:
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