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. XI used doldur win Guard Selling price per unit $ 250 $370 5 235 Variable cont per unit 5 170 5285 Patie injection molding machine processing time required to produce one unit 10 minutes 11 minutes 15 int Pounds of plastie pellets per unit 11 pound pounds 15 pounds 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 eamed 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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 the constrained resource is earned by each product? (Round your final answers to 2 decimal places) 5 Ouard Golf Guard Fishing Guard Contribution margin per minute of the constrained resource por minuto per minute per minute $ 250 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 Pinhing Guard Selling price per unit $ 370 $ 235 Variable cont per unit 5 170 $ 285 5.145 Plastic injection molding machine processing time required to produce one unit 10 minutes 11 minutes 15 minutes Pounds of plastic pellets per unit 11 pounds 6 pounds 13 pounds 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 avallable 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? Complete this question by entering your answers in the tabs below. Required 1 Required2 Required 3 Required 4 Required 5 Which product offers the most profitable use of the plastic injection molding machine? Ski Guard Golf Guard Fishing Guard 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Requied Required Required 5 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? (Round your final answers to 2 decimal places Ski Guard por pound Contribution margir per pound of the constrained resourch Golf Guard per pound Fishing Guard per pound Complete this question by entering your answers in the tabs below. Required: Required 2. Required 3 Required 4 Required 5 which product offers the most profitable use of the plastic pellets? Fishing Guard O Golf Guard Ski Guard Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Requirdas Which product has the largest contribution margin per unit? Golf Guard Ski Guard Fishing Guard Exercise 11-10 (Algo) Make or Buy Decision (LO11-3) Futura Company purchases the 67.000 starters that it installs in its standard line of farm tractors from a supplier for the price of $11.90 per unit. Due to a reduction in output, the company now has idle capacity that could be used to produce the starters rather than buying them from an outside supplier. However, the company's chief engineer is opposed to making the starters because the production cost per unit is $12.50 as shown below: Total Per Unit $ 6.00 2.50 1.80 1.50 0.40 0.30 5 12.50 Direct materials Direct labor Supervision $ 120,600 Depreciation $ 100, 500 Variable manufacturing overhead Rent $ 20,100 Total product cost If Futura decides to make the starters, a supervisor would have to be hired (at a salary of $120,600) to oversee production. However, the company has sufficient idle tools and machinery such that no new equipment would have to be purchased. The rent charge above is based on space utilized in the plant. The total rent on the plant is $83,000 per perlod. Depreciation is due to obsolescence rather than wear and tear Required: What is the financial advantage (disadvantage) of making the 67,000 starters instead of buying them from an outside supplier? $ 2,500 Exercise 11-14 (Algo) Identification of Relevant Costs (LO11-1) Kristen Lu purchased a used automobile for $23,750 at the beginning of last year and incurred the following operating costs: Depreciation ($23,750 5 years) $4,750 Insurance Garage rent $ 1,300 Automobile tax and license $ 650 Variable operating cost $ 0.12 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs, Kristen estimates that, at her current rate of usage the car will have zero resale value in five years, so the annual straight-line depreciation is $4,750. The car is kept in a garage for a monthly fee. Required: 1. Kristen drove the car 23,000 miles last year. Compute the average cost per mile of owning and operating the car. (Round your answers to 2 decimal places.) Average fixed cost per mile Variable operating cost per mile Average cost per milo