Exercise 13-5 (Algo) Volume Trade-Off Decisions [LO13-5) 3.70 $95 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 $ 310 $ 390 $ 215 Variable cost per unit $ 160 Plastic injection molding machine processing time 11 minutes 11 minutes 2 minutes required to produce one unit Pounds of plastie pellets per unit 14 pounds 7 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 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Requirt 1 Required 2 Required 3 Required 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 Golf Guard Fishing Guard Contribution margin per minute of the constrained resource $10.72 per $1091 per per minute $ 20.00 minute minute Requited 1 Required 2 > Exercise 13-5 (Algo) Volume Trade-Off Decisions (LO13-5) 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 Ouard Golf Guard Pishing Guard Selling price per unit $ 310 $ 390 $ 215 Variable cost per unit $ 70 $ 160 $95 Plastic injection molding machine processing time 11 minutes 11 minutes 2 minutes required to produce one unit Pounds of plastic pellets per unit 14 pounds 7 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 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 morgin 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Requires Required 4 Required 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.) Contribution margin per pound of the constrained resource Ski Guard per 10.00 pound Golf Guard per 17.15 pound Fishing Guard per 16.67 pound
