Answered step by step
Verified Expert Solution
Question
1 Approved Answer
URGENT!!! Complete the product mix analysis to determine the contribution margin per machine hour. Containers Plus Product Mix Analysis Regular Large Sales price per unit
URGENT!!!
Complete the product mix analysis to determine the contribution margin per machine hour. Containers Plus Product Mix Analysis Regular Large Sales price per unit Variable cost per unit Contribution margin per unit Units per machine hour Contribution margin per machine hour Which product should Containers Plus emphasize? Why? Containers Plus should emphasize the production of because this product has the higher Requirement 2. To maximize profits, how many of each size bin should Containers Plus produce? (Enter a "0" for any zero amounts.) regular size bins, and Containers Plus should spend machine hours making machine hours making large size bins. Requirement 3. Given this product mix, what will the company's operating income be? Number of regular size bins per period X Contribution margin per regular size bin Total contribution margin Fixed costs Operating income - Data table Regular Large Sales price per unit $ 8.20 $ 10.40 Variable costs per unit 3.20 4.30 Print Done More info The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that Containers Plus can sell as many of each size as it can produce. The company uses the same machinery to produce both sizes. The machinery can only be run for 3,100 hours per period. Containers Plus can produce 12 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $110,000 per period. Print DoneStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started