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 $85,000 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $184 $160 $100 Unit variable cost 130 120 76 Unit contribution margin $ 54 $ 40 $ 24 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 Second Add the following information and answer the question below: Youngstown has 1,700 autoclave hours and no more. Maximum consumer demand for the 3 products is: Large = unlimited, Medium = 500 units, Small = 400 units Special Question: Based on the 1,700 autoclave hours and consumer demand, how many units of Large, Medium and Small will be produced? What will be the total contribution margin for all 3 products? (That means I will produce no more than 500 units of Medium and no more than 400 units of Small.)
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 $85,000 for the company as a whole. In addition, the following information is available about the three products:
| Large | Medium | Small | ||||
| Unit selling price | $184 | $160 | $100 | |||
| Unit variable cost | 130 | 120 | 76 | |||
| Unit contribution margin | $ 54 | $ 40 | $ 24 | |||
| 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 |
Second Add the following information and answer the question below:
Youngstown has 1,700 autoclave hours and no more. Maximum consumer demand for the 3 products is:
Large = unlimited, Medium = 500 units, Small = 400 units
Special Question: Based on the 1,700 autoclave hours and consumer demand, how many units of Large, Medium and Small will be produced?
What will be the total contribution margin for all 3 products?
(That means I will produce no more than 500 units of Medium and no more than 400 units of Small.)
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