NEED HELP WITH QUESTION S8-10.... USE S8-9 FOR PREVIOUS DATA...

S8-9 Product mix decision: Unlimited demand (Learning Objective 5) Storage Solutions produces plastic storage bins for household storage needs. The com- pany 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 3,000 hours per period. The company can produce 10 Large bins every h Regular bins in the same amount of time. Fixed expenses amount to $110,000 per period Sales prices and variable costs are as follows: our compared to 1 Sales price per unit.... Variable cost per unit RegularLarge $8.10 $10.50 $3.50 $4.20 1. Which product should Storage Solutions emphasize? 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? Relevant Costs for Short-Term Decisions 10 Product mix decision: Limited demand (Learning Objective 5) Consider Storage Solutions from S 36,000 units and demand for Large bins is limited to 25,000 units. 1. How 8-9. Assume that demand for Regular bins is limited to many of each size bin should the company make now? Given this product mix, what will be the company's operating income? 2. 3. Explain why the operating income is less than it was when the company was produc- ing its optimal product mix