Exercise 6-5 (Algo) Volume Trade-Off Decisions (L06-5) 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 Guard Guard Selling price per unit $ 260 $ 350 $ 245 Variable cost per unit $ 100 $ 150 $ 105 Plastic injection molding machine processing 6 12 11 time required to produce one minutes minutes minutes unit 15 20 12 Pounds of plastic pellets per unit pounds pounds 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 Required Required Required Required 1 2 3 4 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.) Show less Ski Guard Golf Guard Fishing Guard Contribution margin per minute of the per per per constrained resource minute minute minute Which product offers the most profitable use of the plastic injection molding machine? O Ski Guard O Golf Guard Fishing Guard 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.) Show less Ski Guard Golf Guard Fishing Guard Contribution margin per pound of the per per constrained resource pound pound pound per Which product offers the most profitable use of the plastic pellets? Ski Guard O Fishing Guard O Golf Guard Which product has the largest contribution margin per unit? Ski Guard OFishing Guard OGolf Guard
