Exercise $13-5($Algo$)$ Volume Trade$-$Off Decisions $[$LO$13-5]$

Outdoor Luggage, Incorporated, makes high$-$end hard$-$sided luggage for sports equipment. Data concerning three of the company$$s most popular models appear below:

Ski Guard Golf Guard Fishing Guard

Selling price per unit $ $270$ $ $350$ $ $185$

Variable cost per unit $ $155$ $ $210$ $ $65$

Plastic injection molding machine processing time required to produce one unit $7$ minutes $9$ minutes $12$ minutes

Pounds of plastic pellets per unit $11$ pounds $15$ pounds $13$ pounds

Required:

If the total time available on the plastic injection molding machine is the constraint, how much contribution margin per minute of the constrained resource is earned by each product?

Which product offers the most profitable use of the plastic injection molding machine?

If a severe shortage of plastic pellets required the company to cut back production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product?

Which product offers the most profitable use of the plastic pellets?

Which product has the largest contribution margin per unit?