produces plastic storage bins for household storage needs. The company makes two sizes of bins:...
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produces plastic storage bins for household storage needs. The company makes two sizes of bins: Large gallon and Regular 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 comma hours per period. The company can produce Large bins every hour compared to Regular bins in the same amount of time. Fixed expenses amount to $ comma per period. Sales prices and variable costs are as follows:
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Which product should Contain minus It 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
Question content area bottom
Part
Which product should Contain minus It emphasize Why?
Complete the product mix analysis to determine which product Contain minus It should emphasize.
ContainIt
Product Mix Analysis
Regular
Large
Sales price per unit
Less: Variable cost per unit
Contribution margin per unit
Units per machine hour
x
x
Contribution margin per machine hour
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