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Exercise 25-21 Page 1318 Product Decisions Under Bottlenecked Opetations Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three

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Exercise 25-21 Page 1318 Product Decisions Under Bottlenecked Opetations Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass that it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $85,000 for the company as a whole. In addition, the following information is available about the three products: Lin Item Description Unit selling price Unit variable cost Unit contribution margin Autoclave hours per unit Large Medium Small $184$160$100 Budgeted units of production 3,0003,0003,000 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. b. Prepare an analysis showing which product is the most profitable per bottleneck hour. c. This question adds some additional information: There are 17,000 autoclave hours for the company. Maximum demand for Small is 4,000 units. Maximum demand for Medium is 2,000 units. There is unlimited demand for Large. Required: Part 1 Youngstown desires to maximize operating income. Determine the number of each product to produce. How many are Large? How many are Medium? How many are Small? Part 2 Based on your answer in Part 1, calculate company operating income. I Consumer Demand for Products Large=unlimitedMedium=500units,Small=400units Extra Question: Based on the 1,700 autoclave hours and consumer demand above, how many units of Large, Medium and Small will be produced? What will be the total contribution margin for all 3 products? (That means I will produce no more than 500 units of Medium and no more than 400 units of Small.)

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