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	$300			$380			$225
Variable cost per unit		$160			$170			$75
Plastic injection moulding machine processing time required per unit		7 min			6 min			4 min
Kgs of plastic pellets per unit		11 kg			13 kg			6 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?

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

multiple choice 1

• Fishing Guard

• Ski Guard

• Golf Guard

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

multiple choice 2

• Fishing Guard

• Ski 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 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?

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

multiple choice 3

• Fishing Guard

• Ski Guard

• Golf Guard

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

multiple choice 4

• Fishing Guard

• Ski Guard

• Golf Guard

3. Which product has the largest unit contribution margin?

multiple choice 5

• Golf Guard

• Ski Guard

• Fishing Guard