Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types of safety plate glass: large,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Product Decisions Under Bottlenecked Operations 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 production bottleneck. Total fixed costs are $150,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price Unit variable cost Unit contribution margin Autoclave hours per unit Total process hours per unit Budgeted units of production $108 $281 $249 (85) (230) (219) $ 23 $ 51 $ 30 2 6 4 4 12 12 3,200 3,200 3,200 1 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. Large Medium Small Total Units produced Revenues Variable costs Contribution margin Fixed costs S Operating income b. Prepare an analysis showing which product is the most profitable per bottleneck hour. Round the "Unit contribution margin per production bottleneck hour" amounts to the nearest cent Contribution margin Autoclave hours per unit Unit contribution margin per production bottleneck hour Large Medium Small Product Decisions Under Bottlenecked Operations 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 production bottleneck. Total fixed costs are $150,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price Unit variable cost Unit contribution margin Autoclave hours per unit Total process hours per unit Budgeted units of production $108 $281 $249 (85) (230) (219) $ 23 $ 51 $ 30 2 6 4 4 12 12 3,200 3,200 3,200 1 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. Large Medium Small Total Units produced Revenues Variable costs Contribution margin Fixed costs S Operating income b. Prepare an analysis showing which product is the most profitable per bottleneck hour. Round the "Unit contribution margin per production bottleneck hour" amounts to the nearest cent Contribution margin Autoclave hours per unit Unit contribution margin per production bottleneck hour Large Medium Small
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
What are some examples of artificial selection? How are artificial selection and natural selection similar? How are they different?
-
Gul Ducat Corporation has outstanding 2,000,000 shares of common stock of a par value of $10 each. The balance in Retained Earnings at January 1, 2008, was $24,000,000, and it then had additional...
-
What are the three main institutions of the European Union, and what are their responsibilities?
-
Atlantic, Inc., plans to issue \(\$ 700,000\) of nine percent bonds that will pay interest semiannually and mature in ten years. Assume that the effective interest is eight percent per year...
-
The rate at which a substance passes through a semi permeable membrane is determined by the diffusivity D(cm 2 /s) of the gas. D varies with the membrane temperature T(K) according to the Arrhenius...
-
Vodacom 4G 6:49 AM 66% MECN2013A-DefSupp-Question... 1 of 1 Reading time: 17h20 to 17h25 Working time: 17h25 to 17h50 Submission time: 17h50 to 17h55 End of assessment: 17h55 QUESTION 6 (15 marks)...
-
In the atomic system of units the electron spin at a specific time is described by the vector X = 1 4 [ 2 + 2 i ? ? ? 2 - 2 i ? ? ? ? ? ? ? ? ? ? ? ] Calculate a ) the probability amplitudes, cn = +...
-
You are considering buying a farm. It is 5000Ha. It is expected to produce each year 2500 tonnes of grain which sells for $300/t.net of freight and marketing costs. The crop variable costs are...
-
Describe the basic concepts of Transactional Leadership and Transformational Leadership ?
-
An investment provides a monthly income of $1472.00 every month indefinitely. What is the invested amount if it is worth 7.32% compounded monthly?
-
What is the significance of transactional leadership in the school and community 2. Is transactional leadership being practiced in our school campus and communitv? Evaluate the style of leadership?...
-
Shi Import-Export's balance sheet shows $300 million in debt, $70 million in preferred stock, and $450 million in total common equity. Shi's tax rate is 25%, r d = 8%, r ps = 9.9%, and r s = 17%. If...
-
Using abbreviations (not structures), write the reaction of flavin adenine dinucleotide that gives off energy (-AG). Match the items in the left column to the appropriate blanks in the equation on...
-
Suppose that you are part of a virtual team and must persuade other team members on an important matter (such as switching suppliers or altering the project deadline). Assuming that you cannot visit...
-
In 2009, two of America's largest auto firms, General Motors and Chrysler, each declared bankruptcy. This caused much attention to be focused on this industry, its competitive advantages and...
-
Automakers provide an interesting study in cost management strategies. General Motors often provides a contrast to other U.S. manufacturers in that approximately 46,000 of its workers are...
-
One of the key drivers of downsizing and outsourcing is globalization. One result of globalization is the offshoring of jobs to developing countries. Outsourcing allows for products to be...
Study smarter with the SolutionInn App