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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

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 $ 290 $ 190 $ 215
Variable cost per unit $ 185 $ 90 $ 90
Plastic injection molding machine processing time required to produce one unit 12 minutes 6 minutes 8 minutes
Pounds of plastic pellets per unit 10 pounds 13 pounds 9 pounds

Required:

1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product?

2. Which product offers the most profitable use of the plastic injection molding machine?

3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new 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?

4. Which product offers the most profitable use of the plastic pellets?

5. Which product has the largest contribution margin per unit?

Answer is not complete.

Complete this question by entering your answers in the tabs below.

  • Required 1
  • Required 2
  • Required 3
  • Required 4
  • Required 5

If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? (Round your final answers to 2 decimal places.)

Ski Guard Golf Guard Fishing Guard
Contribution margin per minute of the constrained resource not attempted per minute not attempted per minute not attempted per minute

Required 2

Which product offers the most profitable use of the plastic injection molding machine?

Golf Guardradio button checkedcorrect
Fishing Guardradio button unchecked
Ski Guardradio button unchecked
  • Required 3

If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new 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? (Round your final answers to 2 decimal places.)

Ski Guard Golf Guard Fishing Guard
Contribution margin per pound of the constrained resource not attempted per pound not attempted per pound not attempted per pound

Answer is not complete.

Complete this question by entering your answers in the tabs below.

  • Required 4

Which product offers the most profitable use of the plastic injection molding machine?

Golf Guardradio button checkedcorrect
Fishing Guardradio button unchecked
Ski Guardradio button unchecked

Answer is not complete.

Complete this question by entering your answers in the tabs below.

  • Required 5

Which product offers the most profitable use of the plastic injection molding machine?

Golf Guardradio button checkedcorrect
Fishing Guardradio button unchecked
Ski Guardradio button unchecked

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