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The production process includes an autoclave operation, which is a pressunzed neat treatment. The autoclave is a production bottleneck. Total Tixed costs are $220,000 for
The production process includes an autoclave operation, which is a pressunzed neat treatment. The autoclave is a production bottleneck. Total Tixed costs are $220,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small S235 $121 $349 Unit selling price Unit variable cost (185) (99) (307) Unit contribution margin $ 50 $ 22 S 42 Autoclave hours per unit 4 2 6 Total process hours per unit 8 4 18 Budgeted units of production 4,400 4.400 4,400 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. Large Medium Small Total Units produced Revenues $ $ $ Variable costs Contribution margin $ $ $ $ Fixed costs Operating income $ 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 $ $
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