Superior Containers Produces Restaurant Storage Containers To Maximize Profits,how Many of Each Size Container Should Superior

question 74

Essay

Superior Containers produces restaurant storage containers .The company makes two sizes of containers: regular (55 gallon)and large (100 gallon).Demand for the products is so high that Superior can sell as many of each size as it can produce.The company uses the same machinery to produce both sizes.The machinery can be run for only 2,500 hours per period.Superior can produce 20 regular containers every hour,whereas it can produce 8 large containers in the same amount of time.Fixed costs amount to $250,000 per period.Sales prices and variable costs are as follows:
$$\begin{array} { | l | r | r | } \hline \text { Per Unit } &{ \text { Regular } } &{ \text { Large } } \\\hline \text { Sales price } & \$ 105 & \$ 225 \\\hline \text { Variable costs } & 28 & 42 \\\hline\end{array}$$ To maximize profits,how many of each size container should Superior produce?
Given this product mix,what will the company's operating income be?

---

Definitions:

REM Sleep Behavior Disorder

A sleep disorder characterized by the acting out of dreams during the REM phase of sleep, often resulting in disruptive or violent behaviors.

Psychological Problems

Disorders or issues affecting mental health, leading to distress or impairment in daily functioning.

Night Terrors

A sleep disorder causing feelings of terror or dread, and is often accompanied by screaming, flailing, and sleepwalking, without the clear dreams of nightmares.

Nightmares

Disturbing dreams causing strong emotional responses from the sleeper, typically fear, horror, and anxiety.