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Exercise 11-5 (Algo) Volume Trade-Off Decisions [LO11-5] Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular
Exercise 11-5 (Algo) Volume Trade-Off Decisions [LO11-5] Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Required: 1. 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? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. 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? 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? f we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution m he constrained resource is earned by each product? (Round your final answers to 2 decimal places.) Which product offers the most profitable use of the plastic injection molding machine? Fishing Guard Ski Guard Golf Guard 4> Which product offers the most profitable use of the plastic pellets? Ski Guard Fishing Guard Golf Guard Which product has the largest contribution margin per unit? Ski Guard Fishing Guard
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