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 $$255,000$ for the company as a whole. In addition, the following information is available about the three products:

a$.$ Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.

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.

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.