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	$250			$320			$235
Variable cost per unit		$110			$200			$135
Plastic injection moulding machine processing time required per unit		13 min			11 min			5 min
Kgs of plastic pellets per unit		14 kg			7 kg			6 kg

Required: 1a. 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?

1b. Which product would be the most profitable use of this constraint?

• Fishing Guard

• Ski Guard

• Golf Guard

1c. Which product would be the least profitable use of this constraint?

• Fishing Guard

• Ski Guard

• Golf Guard

2a. 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?

2b. Which product would be the most profitable use of this constraint?

• Golf Guard

• Ski Guard

• Fishing Guard

2c. Which product would be the least profitable use of this constraint?

• Golf Guard

• Ski Guard

• Fishing Guard

3. Which product has the largest unit contribution margin?

• Ski Guard

• Fishing Guard

• Golf Guard