9. 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 $85,500 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $182 $160 $98 Unit variable cost 131 125 76 Unit contribution margin 51 35 22 Autoclave hours per unit 3 2 1 Total process hours per unit Budgeted units of production 3,000 5 4 3,000 3,000 a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.

9. 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 $85,500 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $182 $160 $98 Unit variable cost 131 125 76 Unit contribution margin 51 35 22 Autoclave hours per unit 3 2 1 Total process hours per unit Budgeted units of production 3,000 5 4 3,000 3,000 a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 3CMA: Aril Industries is a multiproduct company that currently manufactures 30,000 units of Part 730 each...

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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 $85,500 for the company as a whole. In addition, the following information is available about the three products: Large Medium Small Unit selling price $182 $160 $98 Unit variable cost 131 125 76 Unit contribution margin 51 35 22 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 Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. Prepare an analysis showing which product is the most profitable per…
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