please answer S8-10 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 thesame machinery is used to produce both sizes. The machinery is available for only 3,00per quarter relaproduce. Theproduct is so high that the company can sell as many of each size as it canhours per period. The company can produce 10 Large bins every hour comparedteRegular bins in the same amount of time. Fixed expenses amount to $110,000 nerSales prices and variable costs are as follows:RegularLargeSales price per unit...$8.10$10.50Variable cost per unit.$3.50$4.201. 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? Relevant Costs for Short-Term DS8-10 Product mix decision: Limited demand (Learning Objective 5)Consider Storage Solutions from S8-9. Assume that demand for Regular bins is limited to36,000 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 produc-ing 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