Two kinds of plastic bins-regular and large

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There are two kinds of plastic bins; regular and large. The machinery can only run for 3500 hours per period. 9 large bins per hour and 17 regular bins per hour can be produced in the same amount of time. Fixed costs are $130,000 per period. The sales prices for the regular bins are $8.40 and the large bins are $10.20. The variable cost per unit is 3.70 for regular bins and 4.20 for large ones. What is the contribution margin per machine hour for both bins? To maximize profits, how many of each size bins should be produced???? I should spend ______ machine hours making _______ regular sized bins, and _________ machine hours making ________ large size bins.

Reference no: EM13827177

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