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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 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 $230,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $226 $165 $183 Unit variable cost 178 135 161 Unit contribution margin $ 48 $ 30 $ 22 Autoclave hours per unit 4 2 Total process hours per unit 18 8 4 Budgeted units of production 5,100 5,100 5,100 a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. Large Medium Small Total Units produced 5,100 5,100 51,000 Revenues $ 1,152,600 $ 841,500 993,300 2,987,400 Less: Variable costs 907,800 688,500 821,100 2,417,400 Contribution margin 244,800 $ 153,000 172,100 $ 569,900 Less: Fixed costs 230,000 Income from operations 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. Large Medium Small Unit contribution margin $ 48 30 $ 22 Autoclave hours per unit 6 4 2 Unit contribution margin per production bottleneck hour $ 8 $ 7.5 $ 11