Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
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 $147,000 for the company as a whole. In addition, the following information is available about the three products: Large $207 163 Medium $248 Small $199 Unit selling price Unit variable cost 203 175 Unit contribution margin 544 $ 45 $ 24 Autoclave hours per unit Total process hours per unit 12 12 Budgeted units of production 2,900 2,900 2,900 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 Revenues Variable costs Contribution margin Fixed costs 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 Contribution margin Autoclave hours per unit Unit contribution margin per production bottleneck hour
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started