$/$ilrn$/$takeAssignment$/$takeAssignmentMain$.$do$?$invoker$=$&takeAssignmentSessionLocator$=$assignment$-$take&inprogress$=$false

Active&Fit

Disney$+$

Netflix

Amazon

Target

Viking Portal

Google Docs

Gmail

All Bookmark

eBook

Product Decisions Under Bottlenecked Operations

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 $$294,000$ for the company as a whole. In addition, the following information is available about the three products:

b$.$ Prepare an analysis showing which product is the most profitable per bottleneck hour. Round the "Unit contribution margin per production bottleneck hour" amounts to the nearest cent.

Contribution margin

Autoclave hours per unit

Unit contribution margin per production bottleneck hour

Large

Medium

$

Small

$4$

Previous

Next