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. 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 Ski Golf Fishing Guard Guard Guard 270 $ 350 $ 185 155 $ 210 $ 65 7 minutes 9 minutes 12 minutes 11 pounds 15 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 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 Golf Guard Fishing Guard Contribution margin per minute of the constrained resource per minute per minute per minute Required Required 2 > nces Required 1 Requiret 2 Required 3 Required 4 Required 5 Which product offers the most profitable use of the plastic injection molding machine? Oski Guard Golf Guard OFishing Guard Requited 3 Required Required 2 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 Golf Guard Fishing Guard Contribution margin per pound of the constrained per pound per pound per pound resource Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 5 Required 4 Which product offers the most profitable use of the plastic pellets? O Golf Guard Oski Guard O Fishing Guard Required 1 Required 2 Required 3 Required 4 Required 5 Which product has the largest contribution margin per unit? Ski Guard O Fishing Guard Golf Guard
