Financial and Managerial Accounting: E25-21 Gannett Glass Company manufactures three types

Financial and Managerial Accounting 
E25-21 Product decisions under bottlenecked operations 
Gannett Glass Company manufactures three types of safety plate glasses: large, medium, and small. All three products have high demand. Thus, Gannett Glass is able to sell all the safety glass that it can make. The production process includes an autoclave operation, which is pressurized head treatment. The autoclave is production bottleneck. Total fixed costs are $550,000. In addition, the following information is available about the three products: 
Large Medium Small 
Unit selling price 240 180 120 
Unit variable cost 126 80 68 
Unit contribution margin 114 100 52 
Autoclave hours per unit 6 10 4 
Total Process hours per unit 20 16 12 
Budgeted units of production 2,500 2,500 2,500 

Instruction: 
a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production. 
b. Prepare an analysis showing which product is the most profitable per bottleneck hour.
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