=+EX 25-21 Product decisions under bottlenecked operations obj. 3

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a. Total income from operations,

$88,000 Chapter 25 Differential Analysis and Product Pricing 1169 Large Medium Small Unit selling price $120 $100 $90 Unit variable cost 96 85 75 ____ ____ ___ Unit contribution margin $ 24 $ 15 $15 ____ ____ ___ ____ ____ ___ Autoclave hours per unit 4 2 1 Total process hours per unit 8 6 3 Budgeted units of production 3,000 3,000 3,000

a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.