Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and
small. All three products have high demand. Thus, Youngstown 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  bottleneck. Total fixed costs are $85,500 for the company as a whole. In addition, the following information is available about the three products:
Large Medium Small

Unit selling price $182 $160 $98

Unit variable cost 131 125 76

Unit contribution margin 51 35 22

Autoclave hours per unit 3 2 1

Total process hours per unit 5 4 2

Budgeted units of production 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 analysis showing which product is the most profitable per bottleneck hour.

Answer rating: 100% (QA)

a The contribution margin by glass type and the total company income from operations for the budgete... View the full answer