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Exercise 1 3 - 5 ( Algo ) Volume Trade - Off Decisions [ LO 1 3 - 5 ] Outdoor Luggage, Inc., makes high
Exercise Algo Volume TradeOff Decisions LOOutdoor Luggage, Inc., makes highend hardsided luggage for
sports equipment. Data concerning three of the companys most
popular models appear below.Required: If we assume that the total time available on the plastic
injection molding machine is the constraint in the production
process, 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 we assume that a severe shortage of plastic pellets has
required the company to cut back its 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?
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