Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Accounting Posted 22 Jul 2017 My Price 11.00

Gannett Glass Company

Gannett Glass Company manufactures three types of safety plate glass: 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 a pressurized heat treatment. The autoclave is a 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

Assume that Gannett Glass wanted to price all products so that they produced the same profit potential as the highest profit product. Thus, determine the prices for each of the products so that they would produce a profit equal to the highest profit product.

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Jul 2017 11:07 PM My Price 11.00

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