Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Constrained resources Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. 6 Fishing

image text in transcribed
image text in transcribed
Constrained resources Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. 6 Fishing Guord Golf Guard Ski Guard $310 $275 Selling Price per unit Variable Cost per unit $330 $85 $150 $150 Plastic Injecting Molding equipment time required to produce one unit 5 minutes 15 minutes 8 minutes Pounds of plastic pellets per unit ($1.50 per pound) 10 pounds 7 pounds 9 pounds Direct labor @$20 per hour 5 minutes 8 minutes 15 minutes Weekly demand in units 3,000 500 1,000 The total time available on the plastic injection molding machine is the constraint in the production process. The Outdoor Luggage works 2 shifts per day and operates six days per week. The company has 4 injection molding machines. The company allocates overhead on direct labor hours. The POHR is $75 per direct labor hour. a. What is the maximum time in minutes per week? b. What is the equivalent contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? 000 99 C0LER What is the optimal production volume of for Ski Guard, Golf Guard and Fishing Guard to c. maximize profits during one week? d. What is the product cost for Ski Guard

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Management Accounting With Myaccountinglab And

Authors: Alnoor Bhimani, Charles T. Horngren, Gary L. Sundem, William O. Stratton, Jeff Schatzberg, Dave Burgstahler

1st Edition

1292178116, 978-1292178110

More Books

Students also viewed these Accounting questions

Question

Prepare a constructive performance appraisal.

Answered: 1 week ago

Question

List the advantages of correct report formatting.

Answered: 1 week ago