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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 Gloss 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 Unit selling price $184 $160 $100 Unit variable cost (130) (120) (76) Unit contribution margin $ 54 $ 40 Small $ 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 a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production Large Medium Small Total Units produced Revenues Variable costs Contribution margin Fixed costs Operating income 269,000 b. Prepare an analysis showing which product is the most profitable per bottleneck hour Medium Small Large 162,000 Contribution margin 120,000 72,000 b. Prepare an analysis showing which product is the most profitable per bottleneck hour. Large Contribution margin 162,000 Medium Small 120,000 72,000 Autoclave hours per unit Unit contribution margin per production bottleneck hour

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