Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Outdoor Luggage Inc. makes high - end, hard - sided luggage for sports equipment. Data concerning three of the company s most popular models appear

Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the companys most popular models appear below.
Ski
Guard Golf
Guard Fishing
Guard
Selling price per unit $ 310 $ 320 $ 265
Variable cost per unit $ 110 $ 150 $ 145
Plastic injection moulding machine
processing time required per unit 8 min 10 min 10 min
Kgs of plastic pellets per unit 7 kg 16 kg 6 kg
Required:
1-a. The total time available on the plastic injection moulding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard?
1-b. Which product would be the most profitable use of this constraint?
multiple choice 1
Ski Guard
Fishing Guard
Golf Guard
1-c. Which product would be the least profitable use of this constraint?
multiple choice 2
Ski Guard
Fishing Guard
Golf Guard
2-a. A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection moulding machine is no longer the bottleneck. Instead, the constraint is the total available kilograms of plastic pellets. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard?
2-b. Which product would be the most profitable use of this constraint?
multiple choice 3
Ski Guard
Golf Guard
Fishing Guard
2-c. Which product would be the least profitable use of this constraint?
multiple choice 4
Ski Guard
Golf Guard
Fishing Guard
3. Which product has the largest unit contribution margin?
multiple choice 5
Ski Guard
Fishing Guard
Golf Guard

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis Revised

Authors: Charles T. Horngren, Monte Wynder, William Maguire, Rebecca Tan, Srikant Datar, Lester E. Heitger

1st Australian Edition

1442554770, 978-1442554771

More Books

Students also viewed these Accounting questions

Question

LO2 Describe the various purposes of performance appraisals.

Answered: 1 week ago