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Lieber's, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Sales Demand (units) Selling price
Lieber's, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Sales Demand (units) Selling price per unit Variable cost per unit Ski Guard 6,000 $200 $60 Golf Guard 5.000 $300 $140 Fishing Guard 3,000 $255 $55 Pounds of plastic pellets per unit 8 4 Answer the following three (3) questions. Use Excel to do your calculations. 1. What is the contribution margin per unit for each product? Ski Guard Gold Guard Fishing Guard 2. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its 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? 3. How many units of each product should be produced if the company can only acquire 50,000 pounds of pellets
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