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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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