question archive It produces plastic storage bins for household storage needs
It produces plastic storage bins for household storage needs
Subject:BusinessPrice: Bought3
It produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large (200 L) and Regular (140 L). Demand for the product is so high that Store - It 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 only 3,600 hours per period. Store - It can produce 13 Large bins or 16 Regular bins every hour. Fixed expenses amount to $105,000 per period. Sales prices and variable costs are as follows: (Click the icon to view the costs.) 1. Which product should Store - It emphasize? Why? 2. To maximize profits, how many of each size bin should Store - It produce? 3. Given this product mix, what will the company's operating income be? 1. Which product should Store - It emphasize? Why? Complete the product mix analysis to determine which product Store - It should emphasize. ? Costs Store-It Product Mix Analysis Regular Large $ 8.40 $ 10.10 Regular Large Sales price per unit. Variable cost per unit Sales price per unit $ 3.50 $ 4.50 Less: Variable cost per unit Contribution margin per unit Units per machine hour Print Done Contribution margin per machine hour
