Exercise 12-5 Volume Trade-Off Decisions (LO12-5) Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Fishing G uard 215 Ski Guard 290 $ 185 $ 12 minutes 10 pounds Golf Guard 190 90 6 minutes 13 pounds Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit $ $ 90 8 minutes 9 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 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 5 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? (Round your final answers to 2 decimal places.) Ski Guard per minute Golf Guard per minute Fishing Guard per minute Contribution margin per minute of the constrained resource Required 1 Required 2 > Required 1 Required 3 Required 4 Required 5 Which product offers the most profitable use of the plastic injection molding machine? O Golf Guard O Fishing Guard O Ski Guard Required 1 Required 2 Required 3 Required 4 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 per pound Golf Guard per pound Fishing Guard per pound Contribution margin per pound of the constrained resource Required 1 Required 2 Required 3 Required 4 Required 5 which product offers the most profitable use of the plastic pellets? O Ski Guard O Fishing Guard O Golf Guard Required 1 Required 2 Required 3 Required 4 Required 5 Which product has the largest contribution margin per unit? O Golf Guard Ski Guard Fishing Guard
