Safe-Tee Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Safe-Tee 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. Fixed costs are $450,000. 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 bottleneckhour.

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Medium Large $230 122 $108 Small S105 50 Sales price per unit Variable cost per unit Contribution margin per unit Autoclave hours per unit Total process hours per unit Budgeted units of prodution 2,000 $190 85 $105 10 16 2,000 20 12 2,000