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		$240			$370			$225
Variable cost per unit		$100			$200			$105
Plastic injection molding machine processing time required to produce one unit		7 minutes			5 minutes			7 minutes
Pounds of plastic pellets per unit		15 pounds			7 pounds			10 pounds

Required:

1a.

The total time available on the plastic injection molding 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? (Round your answers to 2 decimal places.)

	Ski Guard		Golf Guard		Fishing Guard
Selling price per unit
Variable cost per unit
Contribution margin per unit
Plastic injection molding machine processing time required to produce one unit		minutes		minutes		minutes
Contribution margin per unit of the constrained resource		per minute		per minute		per minute

1b.

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

	Golf Guard
	Fishing Guard
	Ski Guard

1c.

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

	Golf Guard
	Fishing Guard
	Ski Guard

2a.

A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection molding machine is no longer the bottleneck. Instead, the constraint is the total available pounds of plastic pellets. What is contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? (Round your answers to 2 decimal places.)

	Ski Guard		Golf Guard		Fishing Guard
Selling price per unit
Variable cost per unit
Contribution margin per unit
Pounds of plastic pellets required to produce one unit		pounds		pounds		pounds
Contribution margin per unit of the constrained resource		per pound		per pound		per pound

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?

	Golf Guard
	Fishing Guard
	Ski Guard