- Storeaway Produces Plastic Storage Bins For Household Storage Needs Click The Icon To View Additional Information Requi 1 (19.7 KiB) Viewed 9 times
- Storeaway Produces Plastic Storage Bins For Household Storage Needs Click The Icon To View Additional Information Requi 2 (27.23 KiB) Viewed 9 times
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or unit r ar mach More info Regular 8.70 Large 10.30 Print The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that StoreAway 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 3,500 hours per period. StoreAway can produce 12 large bins every hour, whereas it can produce 15 regular bins in the same amount of time. Fixed costs amount to $130,000 per period. - X Done
unit machine hour Data table Sales price per unit Variable costs per unit Print Regular Large $ 8.70 $ 3.60 Done - X 10.30 4.00
margin per unit chine hour margin per mach Requirements 1. Which product should StoreAway emphasize? Why? 2. To maximize profits, how many of each size bin should StoreAway produce? 3. Given this product mix, what will the company's operating income be? Print Done