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Determine the contribution margin by glass type

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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.

Reference no: EM131960147

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