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	$	310		$	340		$	265
Variable cost per unit	$	80		$	140		$	115
Plastic injection moulding machine processing time required per unit		5	min		6	min		3	min
Kgs of plastic pellets per unit		6	kg		15	kg		6	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?

multiple choice 1

Fishing Guard

Golf Guard

Ski Guard

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

multiple choice 2

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?

multiple choice 3

Ski Guard

Golf Guard

Fishing Guard

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

multiple choice 4

Ski Guard

Golf Guard

Fishing Guard

3. Which product has the largest unit contribution margin?

multiple choice 5

Ski Guard

Fishing Guard

Golf Guard