Madero Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Madero 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 $125,000. In addition, the following information is available about the three products:

a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.
b. Prepare an analysis showing which product is the most profitable per bottle-neckhour.

  • CreatedFebruary 04, 2014
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