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StoreAway produces plastic storage bins for household storage noods. The corneany makes two scos of birts Large (50 grilicn) and Rusgitir (35 gillon). Demand for

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StoreAway produces plastic storage bins for household storage noods. The corneany makes two scos of birts Large (50 grilicn) and Rusgitir (35 gillon). Demand for the product is so high that the company can sell as many of each size as it can produco. The same machinary is used to produce both eizes. The machinery is availabie for only 3,300 hours per period. The company can produce 10 Large bins every hour comparod io 15 Ropular birs in the same amicunt of tires Fixod expensas amount 10$100,000 por period. Sales pricos and variablo costs are as follows: (Click the icon to view the costs.) 1. Which product should SibreAway emphasize? Why? 2. To maximize profits, how many of each size bin should the company produce? 3. Given this product mix; what will the company's operating income be? Complete the produdt max analysis to determine which product StoreAwiy should emphasize. for the product is so hagh that the company can sell as mary of each stze as it can produce. The sarme machinery is ised to produce beth alase. The machinery is available for only 3,300 hours por period. The company can produce 10 Larpe bins every hour compared to 15 Fogular bins in the eartse ankount of firne. Fied expenses amount to $100,000 por penod. Salos pricas and variablo costs are as folloas (Cick the ican to view the costs.) 1. Which product should Sofrefuay emphasize? Why? 2. To maximize profits, how many of each size bin thould the company produce? 3. Given this product mix. what wilt the company's operating income be? Decision: StoreAway should emghasizo the production of Regular bint bocause tho contribution margin per machine hour' is tigher. 2. To maximiee profits, how many of oach size bin should the compony produce? (Complote all input Geldy Enter a "U? if no bens sheuld be prodicis) Number of Regular bins StoreAway should make Number of Large bins StoreAway should make 3. Given the product mix determined in the previous step, calculate StoreAway's operating income for the period. Number of bins per period Contribution margin per bin Total contribution margin Less: Fixed experises. Operating income Data table

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