Product Decisions Under Bottlenecked Operations, Pennsylvania Glass Company manufactures three types of safety plate glass | eBooks | Education

Product Decisions Under Bottlenecked Operations, Pennsylvania Glass Company manufactures three types of safety plate glass

Product Decisions Under Bottlenecked Operations, Pennsylvania Glass Company manufactures three types of safety plate glass PLDZ-3039
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Product Decisions Under Bottlenecked Operations

Pennsylvania Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Pennsylvania 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 $264,000 for the company as a whole. In addition, the following information is available about the three products:

   Large

   Medium

   Small

Unit selling price

$324

$110

$448

Unit variable cost

255

90

394

Unit contribution margin

$ 69

$ 20

$ 54

Autoclave hours per unit

6

2

4

Total process hours per unit

18

4

8

Budgeted units of production

4,100

4,100

4,100

  1. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.

Large     

Medium     

Small     

Total     

Units produced

Revenues

$4,100

$4,100

$4,100

$

Less: Variable costs

Contribution margin

$

$

$

$

Less: Fixed costs

$264,000

Income from operations

$

  1. 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 cent.

Large    

Medium    

Small    

Contribution margin

$

$

$

Autoclave hours per unit

Unit contribution margin per production bottleneck hour

$

$

$

So far this is what ive got right.. please help. Showing all work is appreciated.

 

Product Decisions Under Bottlenecked Operations Pennsylvania Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Pennsylvania Glass is able to sell all the safety glass t
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