Question

Explain why the operating income is less than it was when the company was producing its optimal product mix. Operating income is less than it was when Storage Solutions was producing its optimal product mix​ because: A. the company had to give up some of the regular bin contribution margin per machine hour in order to produce large bins B. the company had to produce fewer regular size bins to match demand for these bins C. A and B D. None of the above

Answer 1

There it is below

Step-by-step explanation:

Given this product mix. what will the company's operating income be? ... the production of regular bins because the contribution margin per machine hour is higher. ... is less than it was when StoreAll was producing its optimal product mix. ... its optimal product mix because: the company had to produce less regular size bins ...