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Profitability Analysis with Production Constraints Tony Pasta Company makes three types of products: spaghetti, elbows, and fettuccine. The production process involves mixing, extruding, and drying. The drying operation is a constraining resource in this operation. Sales price per unit Variable cost per unit The fixed costs are $120,000. products are: Drying hours per unit Units produced (prior year) The production volume and constraint usage Spaghetti $25 15 information for the three The following profitability report has been prepared for the prior year's sales levels: Units of production Revenues Less variable costs Contribution margin Less fixed costs Profit Spaghetti 0.5 8,000 Spaghetti 8,000 $200,000 120 ooo Elbows $30 18 Elbows 0.25 4,000 Elbows 4,000 $120,000 72 ooo Fettuccine $35 20 Fettuccine 0.1 2,000 Fettuccine 2,000 $70,000 40 000 Total $390,000 232 ooo $158,000 120 ooo