Question - Youngstown glass co manufactures 3 types of safety plate glass, large-medium-small. All 3 products have high demand. All 3 include autoclave operation, which is a pressurized heat treatment. The autoclave is a productions bottle neck. Total fixed costs are $85,000 for the company as a whole. In addition, the following information is available about the 3 products:
Unit selling price L-$184 M-160 S-100
Unit var cost L-130 M-120 S-76
Unit contribution margin L-54 M-40 S-24
Autoclave hours per unit L-3 M-2 S-1
Total process hours per unit L-5 M-4 S-2
Budgeted units of prod L-3000 M-3000 S-30000
A- Determine the contribution margin by glass type & the total company income from operations
B- Analysis showing which product is most profitable per bottleneck hour.