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	$	280		$	360		$	245
Variable cost per unit	$	90		$	160		$	115
Plastic injection moulding machine processing time required per unit		6	min		14	min		2	min
Kgs of plastic pellets per unit		12	kg		10	kg		8	kg

Required: 1-a. 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?

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

• Fishing Guard

• Golf Guard

• Ski Guard

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

• Fishing Guard

• Golf Guard

• Ski Guard

2-a. 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?

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

• Golf Guard

• Ski Guard

• Fishing Guard

2-c. 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

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 Contribution margin per unit of the constrained resource $ 0 $ 0 $ minutes minutes minutes 0 per minute 0 per minute 0 per minute Ski Guard Golf Guard Fishing Guard Selling price per unit Variable cost per unit Contribution margin per unit Kgs of plastic pellets required to produce one unit Contribution margin per unit of the constrained resource $ 0 $ 0 $ 0 kgs kgs 0 per kg kgs 0 per kg 0 per kg