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Outdoor Luggage, Incorporated, makes highend hardsided luggage forsports equipment. Data concerning three ofthe company's most popular models appear below. Ski Guard Golf Guard Fishing Guard Selling price per unit $ 296 $ 306 $ 255 Variable cost per unit $ 68 $ 140 $ 55 Plastic injection molding machine processing time required to produce one unit 2 minutes 5 minutes 4 minutes Pounds of plastic pellets per unit If pounds 4 pounds 8 pounds Required: 1. If we assume thatthe 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 protable 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 ofthe 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 labs below. ' Required 1 H 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 oontribution margin per minute of the constrained resource is earned by each product? Contribution margin per minute of the constrained resource Required 1 Required 2 Required 3 Required 4 Required 5 Which product offers the most profitable use of the plastic injection molding machine? Ski Guard Golf Guard OFishing GuardSki Guard Golf Guard Fishing Guard Contribution margin per pound of the constrained resource per pound per pound per poundRequired 1 Required 2 Required 3 Required 4 Required 5 Which product offers the most profitable use of the plastic pellets? Ski Guard Golf Guard OFishing GuardWhich product has the largest contribution margin per unit? Ski guard Golf guard OFishing guardThe most profitable use of the constrained resource is determined by the contribution margin per unit of the constrained resource. In part 1, the constrained resource is time on the plastic injection molding machine. Therefore, the analysis would proceed as follows: Selling price per unit Ski Guard Golf Guard Variable cost per unit $ 280 Fishing Guard $ 300 $ 255 $ 60 Contribution margin per unit (a) . $ 148 $ 55 $ 140 $ 160 Plastic injection molding machine processing time $ 208 required to produce one unit (b) 2 minutes Contribution margin per unit of the constrained 5 minutes 4 minutes resource (a) + (b) $ 70 per unit $ 32 per unit $ 50 per unit Production of the Ski Guard product would be the most profitable use of the constrained resource which is, in this case, time on the plastic injection molding machine. The contribution margin per minute is $70 for this product, which is larger than for the other two products 3 In this part, the constraint is the available pounds of plastic pellets. Ski Guard Golf Guard Fishing Guard Selling price per unit $ 280 $ 308 $ 255 variable cost per unit $ 60 5 148 $ 55 $ 208 Contribution margin per unit (a). $ 168 Pounds of plastic pellets required to produce one unit 7 pounds 4 pounds 8 pounds (b) Contribution margin per unit of the constrained $ 28 per pound $ 40 per pound $ 25 per pound resource (a) + (b)