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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. Outdoor Luggage Inc. makes
Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the companys most popular models appear below.
Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard $240 $100 Golf Guard $370 $200 Fishing Guard $225 $105 Selling price per unit Variable cost per unit Plastic injection moulding machine processing time required per unit Kgs of plastic pellets per unit 7 min 15 kg 5 min 7 kg 7 min 10 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? Ski Guard Golf Guard Fishing Guard $ 240 $ 370 $ 225 100 255 105 $ 140 $ 115 $ 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 120 7 minutes 5 minutes 7 minutes $ 20.00 per minute $ 23.00 per minute $ 17.14 per minute 1b. Which product would be the most profitable use of this constraint? Golf Guard O 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 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? 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 $ 0 $ 0 $ 0 kgs 0 per kg kgs 0 per kg kgs 0 per kg resource 2b. Which product would be the most profitable use of this constraint? Golf Guard O Ski Guard O Fishing Guard 2c. Which product would be the least profitable use of this constraint? Golf Guard Ski Guard O Fishing Guard 3. Which product has the largest unit contribution margin? Golf Guard O Fishing Guard O Ski GuardStep by Step Solution
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