Store-It produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large (50 gallon) and Regular (35 gallon). Demand
Store-It 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 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 3,200 hours per period. The company can produce 10 Large bins every hour compared to 15 Regular bins in the same amount of time. Fixed expenses amount to $105,000 per period. Sales prices and variable costs are as follows: (Click the icon to view the costs.) 1. Which product should Store-It 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? 1. Which product should Store-It emphasize? Why? Complete the product mix analysis to determine which product Store-It should emphasize ideo Get more help- Store-It Product Mix Analysis Regular Large Clear all Check answer orrect: 0 Sales price per unit Less: Variable cost per unit Contribution margin per unit Units per machine hour Contribution margin per machine hour Regular Large Data table x h. 51 CO Regular Large NO du Sales price per unit 8.80 $ 10.90 Variable cost per unit ...... $ 3.50 $ 4.50 La Print Done
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