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 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 $240,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $353 $116 $432 Unit variable cost 278 95 380 Unit contribution margin $ 75 $21 $ 52 4 Autoclave hours per unit Total process hours per unit 18 6. 8 Budgeted units of production 3,600 3,600 3,600 a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. Small Total Large Medium Units produced Revenues $4 Less: Variable costs Contribution margin Less: Fixed costs Income from operations 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

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 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 $240,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $353 $116 $432 Unit variable cost 278 95 380 Unit contribution margin $ 75 $21 $ 52 4 Autoclave hours per unit Total process hours per unit 18 6. 8 Budgeted units of production 3,600 3,600 3,600 a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. Small Total Large Medium Units produced Revenues $4 Less: Variable costs Contribution margin Less: Fixed costs Income from operations 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

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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