Store All produces plastic storage bins for household storage needs. The company makes two sizes...
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Store All produces plastic storage bins for household storage needs. The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the product is so high that Store All 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 3,300 hours per period. Store All can produce 9 large bins every hour, whereas it can produce 15 regular bins in the same amount of time. Fixed costs amount to $110,000 per period. Sales prices and variable costs are as follows: Regular Large Sale price per unit $9.00 $ 10.80 Variable cost per unit $3.10 $4.20 Which product should Store All emphasize? Why? To maximize profits, how many of each size bin should StoreAll produce
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