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

Golf

Guard

Fishing

Guard

Selling price per unit

$

270

$

350

$

185

Variable cost per unit

$

155

$

210

$

65

Plastic injection molding machine processing

time required to produce one unit

7 minutes

9 minutes

12 minutes

Pounds of plastic pellets per unit

11 pounds

15 pounds

13 pounds

Required:

1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product?

2. Which product offers the most profitable use of the plastic injection molding machine?

3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product?

4. Which product offers the most profitable use of the plastic pellets?

5. Which product has the largest contribution margin per unit?