Exercise 13-5 (Algo) Volume Trade-Off Decisions (LO13-5) Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Golf Fishing Guard Selling price per unit Guard Guard 280 200 245 Variable cost per unit 160 $ 115 Plastic injection molding machine processing tine required to produce one unit 6 minutes 14 minutes 2 minutes Pounds of plastic pellets per unit 12 pounds 10 pounds 8 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 pr molding machiner? 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 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 Golf Guard Fishing Guard Contribution margin per minute of the constrained resource per minute per minute per minute Required Required 2 > Complete this question by entering your answers in the tabs below. . Required 1 Required 2 Required 3 Required 4 Required 5 Which product offers the most profitable use of the plastic injection molding machine? ? Fishing Guard Ski Guard Golf Guard 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 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 const resource is earned by each product? (Round your final answers to 2 decimal places.) Skil Guard Golf Guard Fishing Guard Contribution margin per pound of the constrained resource per pound per pound per pound ( (Required 2 Required 4 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 2 Required 3 Required Required 5 Which product offers the most profitable use of the plastic pellets? OS Guard Fishing Guard Golf Guard Required 1 Required 2 Required 3 Required 4 Required s Which product has the largest contribution margin per unit? Fishing Guard Golf Guard Ski Guard
