Product Decisions Under Bottlenecked Operations

11 Homework 1. PR25_04A 2. EX25_02ALG 3. EX25_11ALGO 5. PR25_01A 6. EX25_06 7. EX25_07ALGO 8. EX25_09ALGO 9. EX25_10ALG 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 $264,000 for the company as a whole. In addition, the following information is available about the three products: Large Mediu m unit selling price unit variable cost unit contribution margin Autoclave hours per unit Total process hours per unit Budgeted units of production a. Determine the contribution Units produced Revenues Variable costs Contribution margin Fixed costs Operating income $150 (118) 32 5,200 $380 (311) 5,200 Small $100 (88) $ 12 5,200 margin by glass type and the total company operating income for the budgeted units of production. La rge Medium Small Tota I 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 Contribution margin Autoclave hours per unit unit contribution margin per production bottleneck hour