Question: Requirement 1 . Which product should StoreAll emphasize ? Why? Complete the product mix analysis to determine the contribution margin per machine hour. StoreAll Product

Requirement 1. Which product should StoreAll emphasize? Why?
Complete the product mix analysis to determine the contribution margin per machine hour.
StoreAll
Product Mix Analysis
Regular
Large
Sales price per unit
Variable cost per unit
Contribution margin per unit
Units per machine hour
\times
\times
Contribution margin per machine hour
Part 2
Which product should StoreAll emphasize? Why?
StoreAll should emphasize the production of
large bins
regular bins
because this product has the higher
contribution margin per machine hour.
contribution margin per unit.
sales price per unit.
variable cost per unit.
Part 3
Requirement 2. To maximize profits, how many of each size bin should StoreAll produce?(Enter a"0" for any zero amounts.)
StoreAll should spend
machine hours making
regular size bins, and
machine hours making
large size bins.
Part 4
Requirement 3. Given this product mix, what will the company's operating income be?
Number of regular size bins per period
Contribution margin per regular size bin
\times
Total contribution margin
Fixed costs
Operating income

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