Question: 1. Which product should Store All emphasize? Why? 2. To maximize profits, how many of each size bin should Store All produce? 3. Given this
1. Which product should Store All emphasize? Why? 2. To maximize profits, how many of each size bin should Store All produce? 3. Given this product mix, what will the company's operating income be? ble costs are as follows: view the costs.) s Print Done Product Mix Analysis Regular Large unit Sales price Variable cost per unit Contribution margin per unit Units per machine hour Contribution margin per machine hour Data Table Sales price per unit Variable costs per unit Regular Large $ 8.80 $ 10.20 3.30 4.50 - 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 Store All 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 3,000 hours per period, Store All can produce 12 large bins every hour, whereas it can produce 17 regular bins in the same amount of time. Fixed costs amount to $100,000 per period. Clear All Check
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