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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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