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 $ 300 $ 255 Variable cost per unit $ 130 $ 150 $ 75 Plastic injection molding machine processing time required to produce one unit 7 minutes 8 minutes 15 minutes Pounds of plastic pellets per unit 5 pounds 6 pounds 15 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 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 (Round your final answers to 2 decimal places ) Ski Guard Golf Guard Fishing Guard Contribution margin per minute of the constrained resource per minute per minute per minute Which product offers the most profitable use of the plastic injection molding machine Ski Guardradio Golf Guardradio Fishing Guard 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 (Round your final answers to 2 decimal places ) Ski Guard Golf Guard Fishing Guard Contribution margin per pound of the constrained resource per pound per pound per pound Which product offers the most profitable use of the plastic pellets Ski Guardradio Golf Guardradio Fishing Guard Which product has the largest contribution margin per unit Ski Guardradio Golf Guardradio Fishing Guard Dorsey Company manufactures three products from a common input in a joint processing operation Joint processing costs up to the split off point total $310,000 per quarter For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split off point Unit selling prices and total output at the split off point are as follows Product Selling Price Quarterly Output A $ 12 00 per pound 11,400 pounds B $ 6 00 per pound 17,900 pounds C $ 18 00 per gallon 2,600 gallons Each product can be processed further after the split off point Additional processing requires no special facilities The additional processing costs (per quarter) and unit selling prices after further processing are given below Product Additional Processing Costs Selling Price A $ 52,470 $ 16 30 per pound B $ 74,345 $ 11 30 per pound C $ 27,460 $ 25 30 per gallon Required 1 What is the financial advantage (disadvantage) of further processing each of the three products beyond the split off point 2 Based on your analysis in requirement 1, which product or products should be sold at the split off point and which product or products should be processed further What is the financial advantage (disadvantage) of further processing each of the three products beyond the split off point (Enter disadvantages as a negative value ) Product A Product B Product C Financial advantage (disadvantage) of further processing $ $ $ Based on your analysis in requirement 1, which product or products should be sold at the split off point and which product or products should be processed further Product A Product B Product C Sell at split off point Process further

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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. Ski Guard Golf Guard

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	$	300	$	255
Variable cost per unit	$	130	$	150	$	75
Plastic injection molding machine processing time required to produce one unit	7 minutes		8 minutes		15 minutes
Pounds of plastic pellets per unit	5 pounds		6 pounds		15 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?

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? (Round your final answers to 2 decimal places.)

	Ski Guard		Golf Guard		Fishing Guard
Contribution margin per minute of the constrained resource		per minute		per minute		per minute

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

Ski Guardradio

Golf Guardradio

Fishing Guard

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? (Round your final answers to 2 decimal places.)

	Ski Guard		Golf Guard		Fishing Guard
Contribution margin per pound of the constrained resource		per pound		per pound		per pound

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

Ski Guardradio

Golf Guardradio

Fishing Guard

Which product has the largest contribution margin per unit?

Ski Guardradio

Golf Guardradio

Fishing Guard

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $310,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows:

Product	Selling Price			Quarterly Output
A	$	12.00	per pound		11,400	pounds
B	$	6.00	per pound		17,900	pounds
C	$	18.00	per gallon		2,600	gallons

Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below:

Product	Additional Processing Costs		Selling Price
A	$	52,470	$	16.30	per pound
B	$	74,345	$	11.30	per pound
C	$	27,460	$	25.30	per gallon

Required:

1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point?

2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further?

What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? (Enter "disadvantages" as a negative value.)

	Product A	Product B	Product C
Financial advantage (disadvantage) of further processing	$	$	$

Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which product or products should be processed further?