Question
Outdoor luggage Inc. makes high-end hard sided luggage for sports equipment. Data concerning 3 of the company most popular models appear below. Std. Guard Gof
Outdoor luggage Inc. makes high-end hard sided luggage for sports equipment. Data concerning 3 of the company most popular models appear below.
| Std. Guard | Gof Guard | fishing Guard |
Selling price per unit | $200 | $300 | $255 |
Variable cost per unit | $60 | $140 | $55 |
Time required to produce one unit | 2 minutes | 5 minutes | 4 minutes |
pounds of plastic pellets per unit | 7 pounds | 4 pounds | 8 pounds |
1) given that time is the constraint,
a) which of the above would be the most profitable?
b) which would be the least profitable?
2) A severe shortage of plastic pellets has required the company to cut back on production so now the constraint is no longer time but pounds of plastic.
a) which of the above would be the most profitable?
b) which would be the least profitable?
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