Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the companys most popular models appear below.

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?

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

Ski Guard

Fishing Guard

Golf Guard

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

Ski Guard

Fishing 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 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?

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

Ski Guard

Fishing Guard

Golf Guard

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

Ski Guard

Fishing Guard

Golf Guard

3. Which product has the largest unit contribution margin?

Ski Guard

Fishing Guard

Golf Guard