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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 $298,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small $353 (278) $75 Unit selling price Unit variable cost Unit contribution margin Units produced Autoclave hours per unit Total process hours per unit Budgeted units of production 4,600 4,600 4,600 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. Large Small Revenues Variable costs Contribution margin Fixed costs $297 (243) $54 6 18. 4 $125 (110) $15 8 2 6 Medium 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 Larna Total Madium 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 $298,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small $353 (278) $75 Unit selling price Unit variable cost Unit contribution margin Units produced Autoclave hours per unit Total process hours per unit Budgeted units of production 4,600 4,600 4,600 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. Large Small Revenues Variable costs Contribution margin Fixed costs $297 (243) $54 6 18. 4 $125 (110) $15 8 2 6 Medium 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 Larna Total Madium Small

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $298,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small $297 $125 (243) (110) $54 $15 4 Unit selling price Unit variable cost Unit contribution margin Autoclave hours per unit Total process hours per unit Budgeted units of production 4,600 4,600 4,600 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. Large Small Units produced Revenues Variable costs Contribution margin Fixed costs $353 (278) $75 6 18. 8 2 6 Medium 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 Larna Total Medium Email
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 $298,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small $297 $125 (243) (110) $54 $15 4 Unit selling price Unit variable cost Unit contribution margin Autoclave hours per unit Total process hours per unit Budgeted units of production 4,600 4,600 4,600 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. Large Small Units produced Revenues Variable costs Contribution margin Fixed costs $353 (278) $75 6 18. 8 2 6 Medium 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 Larna Total Medium Email
Autoclave hours per unit Total process hours per unit Budgeted units of production 4,600 4,600 4,600 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. Large Small Units produced Revenues Variable costs Contribution margin Fixed costs 6 18 4 8 2 6 Contribution margin Autoclave hours per unit Unit contribution margin per production bottleneck hour Medium 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. Large Total Medium Small
Transcribed Image Text:Autoclave hours per unit Total process hours per unit Budgeted units of production 4,600 4,600 4,600 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. Large Small Units produced Revenues Variable costs Contribution margin Fixed costs 6 18 4 8 2 6 Contribution margin Autoclave hours per unit Unit contribution margin per production bottleneck hour Medium 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. Large Total Medium Small
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