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Product Decisions Under Bottlenecked Operations Youngstown Glass Compony manufactures three types of safety plate glass large, medium, and unat, All three products have high demand.
Product Decisions Under Bottlenecked Operations Youngstown Glass Compony manufactures three types of safety plate glass large, medium, and unat, All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass that can make. The production process includes an autoclave cperation, which is a pressurized heat treatment. The autaceve is a production bottleneck Total fixed costs are $251,000 for the company as a while. In addition, the following information is available about the three products Large Medium Small Unit selling price $235 $523 Unit variate cost (185) (72) (460) Unit contribution margin $50 $16 100 Autoclave hours per un - 2 Total process hours per unit 12 Budgeted units of production 4,500 6 4,500 12 4,500 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production Units produced Revenues Variable costs Contribution margin Fixed costs Large Small Total Operating income b. Prepare an analysts showing which product is the most prontatie per bottleneck hour Round the "Usit contribution margin per production bottleneck bour amounts to the nearest cent. Contribution margin Autoclave hours per unit Large Medium Small
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