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product decisions under bottlenecked operations Product Decisions Under Bottlenecked Operations...

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Accounting

product decisions under bottlenecked operations
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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 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 bottieneck. Total fixed costs are $270,000 for the company as a whole. In addition, the foliowing information is avallable about the three products: a. Determine the contribution margin by glass type and the total company operating income for the budgeted units of production. b. 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

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