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URGENT StoreAway produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large ( 50 gallon) and Regular ( 35
URGENT
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 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 3,300 hours per period. The company can produce 12 Large bins every hour compared to 17 Regular bins in the same amount of time. Fixed expenses amount to $115,000 per period. Sales prices and variable costs are as follows: (Click the icon to view the costs.) 1. Which product should StoreAwayemphasize? 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 StoreAway emphasize? Why? Complete the product mix analysis to determine which product StoreAway should emphasize Step by Step Solution
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