Question
youngstown glass manufacturing company manufactures three types of safety plate glass: large, medium, small. all three prodcuts have high demand. thus, youngstown glass is able
youngstown glass manufacturing company manufactures three types of safety plate glass: large, medium, small. all three prodcuts have high demand. thus, youngstown glass is able to sell all the safety glass that i 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 85,000 for the company as a whole. in addition the following information is available about three products:
unit selling price 184 160 100
unit varibale cost 130 120 76
unit contribution margin 54 40 24
autoclave hours per unit 3 2 1
total process hours per unit 5 4 2
budgeted units of prodcution 3,000 3,000 3,000
a. determine the contribution margin by glass type and the total company income from operations for the budgeted units of production
b. prepare an anylsis showing which product is the most profitable per bottleneck hour.
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