=+/ a. Total income from operations, $11 5,000 Gannett Glass Company manufactures three types ofsafety plate glass:
Question:
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a. Total income from operations, $11 5,000 Gannett Glass Company manufactures three types ofsafety plate glass: large, medium, and small. All three products have high demand. Thus, Gannett Glass is able to sell all the safety glass that it can make. The production process includes an autoclave operation, which is a pres¬
surized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $550,000.
In addition, the following information is available about the three products:
Unit selling price Unit variable cost Unit contribution margin Autoclave hours per unit Total process hours per unit Budgeted units of production Large Medium Small
$240 $180 $120 126 80 68
$114 $100 $ 52 6 10 4 20 16 12 2,500 2,500 2,500
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