produce Large bins every hour compared to Regular bins in the same amount of time. Fixed expenses amount to $ per period. Sales prices and variable costs are as follows:
View the costs.
Which product should StoreAway emphasize? Why?
To maximize profits, how many of each size bin should the company produce?
Given this product mix, what will the company's operating income be
Which product should StoreAway emphasize? Why?
Complete the product mix analysis to determine which product StoreAway should emphasize.
StoreAway
Product Mix Analysis
Decision: StoreAway should emphasize the production of Regular bins because the contribution margin per machine hour is higher.
To maximize profits, how many of each size bin should the company produce? Complete all input fields. Enter a if no bins should be produced.
Number of Regular bins StoreAway should make
Number of Large bins StoreAway should make
Given the product mix determined in the previous step, calculate StoreAway's operating income for the period.
Number of bins per period
Contribution margin per bin
Total contribution margin
Less: Fixed expenses
Operating income
