Consider StoreAway from S8- 8. Assume that demand for Regular bins is limited to 38,400 units and demand for Large bins is limited to 22,000 units.
1. How many of each size bin should the company 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 the company was produc-ing its optimal product mix.