Product Mix Analysis | |||
Regular | Large | ||
Sales Price per unit | 8.1 | 10.5 | |
Less: Variable cost per unit | 3.5 | 4.2 | |
Contribution Margin per Unit | 4.6 | 6.3 | |
Units per Machine Hour | 15 | 10 | |
Contribution Margin per Machine hour | 69 | 63 | |
Emphasize production of Regular Bins | |||
Because contribution margin per machine hour is higher than the large size bins | |||
Should produce regular first and remaining large | |||
Make 36000 regular bins and 6000 large bins | |||
Calculation of Operating Income | |||
Regular | Large | Total | |
Number of bins per period | 36,000 | 6000 | |
Contribution Margin per bin | 4.6 | 6.3 | |
Total contribution margin | 165,600 | 37,800 | 203,400 |
Less: Fixed Expenses | 110,000 | ||
Operating Income | 93,400 | ||
Both A and B | |||
i.e. C |
Storage Solutions produces plastic storage bins for household storage needs. The company makes two sizes of...
Storage Solutions 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 used to be so high that the company could sell as many of each size as it could produce. The same machinery is used to produce both The machinery is available for only 3,000 hours per period. The company can produce 10 Large bins every hour compared to 15 Regular bins in...
ContainAll produces plastic storage bins for household storage needs. i (Click the icon to view additional information.) Sales prices and variable costs are as follows: E: (Click the icon to view the costs.) Read the requirements. Requirement 1. Which product should ContainAll emphasize? Why? Data Table More Info Complete the product mix analysis to determine the contribution margin per machine hour. ContainAll Product Mix Analysis Regular Large Sales price per unit Regular $ 8.90 $ 3.70 Large 10.80 4.10 The...
Requirements ContainAll produces plastic storage bins for household storage needs. i (Click the icon to view additional information.) 1. Which product should ContainAll emphasize? Why? 2. To maximize profits, how many of each size bin should ContainAll produce? 3. Given this product mix, what will the company's operating income be? Requirement 1. Which product should ContainAll emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hou Print Done ContainAll Product Mix Analysis Regular Large Regular...
58-8 (similar to) ContainAll 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 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 3,200 hours per period. The company can produce 9 Large bins every hour compared to 15 Regular bins...
This questtion is 1 to 3, i attached pictures of options for question 1 please enlarge it to view them. please all data in the blue box are included. - X More Info Data Table th that hour. Fi two sizes only 3,40 þperating þins is limite Large optimal pd $ Organize It Operating Income from Optimal Product Mix Number of bins per period 57,800 Contribution margin per bin 4.60 Total contribution margin $ 265,880 Less: Fixed expenses (105,000) $...
Need help with S8-10 58-10 Product mix decision: Limited demand (Learning Objective 5) Consider Storage Solutions from $8-9. Assume that demand for Regular bins is limited to 36,000 units and demand for Large bins is limited to 25,000 units. 1. How many of each size bin should the company make now? Given this product mix, what will be the company's operating income? s. Explain why the operating income is less than it was when the company was produce ing its...
Ch 25-3 Score: 0 of 10 pts 3 of 5 0 completely HW Score: 0% 0 of 36 pis S25-5 (similar to) Best on teip Storage Solutions produces plastic storage bins for household storage needs Cick the icon to view additional information) Sales prices and amable costs are as fotos (Click the icon to wew the costs Read the ents Requirement 1. Which product should Storage Solutions emphasize? Why? Complete the product mix analysis to determine the contribution margin per...
Requirement 1. Which product should Container Solutions emphasize? Why? Complete the product mix analysis to determine the contribution margin per machine hour. More Info - X The company makes two sizes of bins: large (50 gallon) and regular (35 gallon). Demand for the products is so high that Container Solutions 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 3,600 hours...
Tra c es tipes of Regular and was the c a se and related demand is such could use of machine hos producing model Them es are through the same production department Potepinis Data Teadlight Product Me Analysis TreadLight Product Mix Analysis Deluxe Regular Contribution margin for equivalent number of direct labor hours Contribution margin for equivalent number of machine hours Contribution margin per unit Fixed costs per unit Sale price per unit Units produced with equivalent number of direct...
AllTreads produces two types of exercise treadmills: Regular and Deluxe. The exercise craze and related demand is such that AllTreads could use all of its available machine hours producing either model. The two models are processed through the same production department. B (Click the icon to view the data.) What product mix will maximize operating income? (Hint: Use the allocation of fixed manufacturing overhead to determine the proportion of machine hours used by each product.) Prepare the product mix analysis....