please answer S8-10 **Product mix decision: Unlimited demand**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 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 3,000 hours per period. The company can produce 10 Large bins every hour compared to 15 Regular bins in the same amount of time. Fixed expenses amount to $110,000 per period. Sales prices and variable costs are as follows:| | Regular | Large ||--------------|---------|-------|| Sales price per unit | $8.10 | $10.50|| Variable cost per unit | $3.50 | $4.20 |1. Which product should Storage Solutions emphasize? Why?2. To maximize profits, how many of each size bin should the company produce?3. Given this product mix, what will the company’s operating income be?**Explanation:**- The table provides the sales price per unit and variable cost per unit for both Regular and Large bins.- The task involves determining which product to focus on to maximize profits, how many of each product to produce within the constraints, and calculating the operating income. ### Product Mix Decision: Limited Demand#### Relevant Costs for Short-Term Decisions**Learning Objective 5**Consider Storage Solutions from S8-9. 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?**2. **Given this product mix, what will be the company’s operating income?**3. **Explain why the operating income is less than it was when the company was producing its optimal product mix.**

The contribution margin is calculated by deducting the variable expense from the sales revenue.

S8-9 Product mix decis product is so high that the company can sell as many of each size as it cana same machinery is used to produce both sizes. The machinery is available for hours per period. The company can produce 10 Large bins Regular bins in the same amount of time. Fixed expenses amount to $110.000 Sales prices and variable costs are as follows: 222 every hour compa

S8-9 Product mix decis product is so high that the company can sell as many of each size as it cana same machinery is used to produce both sizes. The machinery is available for hours per period. The company can produce 10 Large bins Regular bins in the same amount of time. Fixed expenses amount to $110.000 Sales prices and variable costs are as follows: 222 every hour compa

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Fans Company has two service departments-product design and engineering support, and two production departments - assembly and finishing. The distribution of each service department's efforts to the other departments is shown below: Design SERVICE DEPARTMENT Product Design 0% Engineering Support 20% The direct operating costs of the departments (including both variable and fixed costs) were as follows: Product Design Engineering Support Assembly Finishing Multiple Choice $1,863,265 SERVICES PROVIDED TO Support 10% 0% $623,878 $1,036,122 Assembly 30% 45% $100,000 $ 200,000 $540,000 $ 820,000 The total cost accumulated in the assembly department using the reciprocal method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar) Finishing 60% 35% D
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On this question may you please explain how it came to 41880 instead of 41860
How to solve:S= 1/1.06[1-1/(1.06)^20]/1-1/1.06
For what purpose Form 2553 is required?
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5 X100 ry https://ng.cengage.com/static/nb/ui/evo/index.html?deploymentld-5829202317504197666520360810&eISBN=97... A S CENGAGE | MINDTAP I Chapter 4 Assignment Maria is a divorce attorney who practices law in San Francisco. She wants to join the American Divorce Lawyers Association (ADLA), a professional organization for divorce attorneys. The membership dues for the ADLA are $500 per year and must be paid at the beginning of each year. For instance, membership dues for the first year are paid today, and dues for the second year are payable one year from today. However, the ADLA also has an option for members to buy a lifetime membership today for $4,500 and never have to pay annual membership dues. Obviously, the lifetime membership isn't a good deal if you only remain a member for a couple of years, but if you remain a member for 40 years, it it's a great deal. Suppose that the appropriate annual interest rate is 8.5%. O 13 years O 15 years What is the minimum number of years that…
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