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- X More Info Data Table th that hour. Fi two sizes only 3,40 perating ins is limite Large optimal pd $ Organize It Operating Income from Optimal Product Mix Number of bins per period 57,800 Contribution margin per bin 4.60 Total contribution margin $ 265,880 Less: Fixed expenses (105,000) $ 160,880 Operating income Organize It Product Mix Analysis Regular Sales price per unit 8.10 Less: Variable cost per unit (3.50) Contribution margin per unit 4.60 Units per machine hour 17 78.20 Contribution margin per machine hour $ 10.10 (4.80) 5.30 12 $ $ 63.60 interim c Print Done Print Done 1+ Organize It produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large (200 L) and Regular (140 L). Demand for the product used to be so high that Organize It could sell as many of each size as it could produce. The company uses the same machinery to produce both sizes. The machinery can be run for only 3,400 hours per period. Organize it can produce 12 Large bins or 17 Regular bins every hour. Fixed expenses amount to $105,000 per period. E (Click the icon to view the product mix analysis.) (Click the icon to view the operating income from the optimal product mix.) Assume now that demand for Regular bins is limited to 27,200 units and demand for Large bins is limited 25,000 units. 1. How many of each size bin should Organize It make now? 2. Given this product mix, what will be the company's operating income? 3. Explain why the operating income is less than it was when Organize It was producing its optimal product mix. 1. How many of each size bin should Organize It make? This is a product mix decision. First, determine which bin size Organize It should emphasize. Organize It should emphasize the production of size bins since they are the size bins. Decision: Organize should produce Regular size bins and Large size bins. (Round interim calculations and your final answers to the nearest whole number.) 2. Given this product mix, what will be the company's operating income? Organize It Operating Income from Product Mix Regular Large Total X Total contribution margin Less: Operating income 3. Explain why the operating income is less than it was when Organize It was producing its optimal product mix. Operating income is less than it was when Organize It was producing its optimal product mix because: O A. the company had to produce less Regular size bins to match demand for these bins B. the company had to give up some of the Regular bin contribution margin per machine hour in order to produce Large bins OC. A and B OD. None of the above Choose from any list or enter any number in the innut fields and then continue to the neyt