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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 $230 $
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 $230 $ 90 Golf Guard $330 Fishing Guard $265 $105 $150 Selling price per unit Variable cost per unit Plastic injection moulding machine processing time required per unit Kgs of plastic pellets per unit 5 min 4 min 5 kg 10 min 11 kg 12 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? Ski Guard Golf Guard Fishing Guard 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 Iminutes minutes minutes per minute per minute per minute 1-b. Which product would be the most profitable use of this constraint? Ski Guard Golf Guard Fishing Guard 1-c. Which product would be the least profitable use of this constraint? Ski Guard Golf Guard Fishing 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? 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 resource kgs kgs kgs per kg per kg per kg 2-b. Which product would be the most profitable use of this constraint? Ski Guard Fishing Guard Golf Guard 2-c. Which product would be the least profitable use of this constraint? Ski Guard Fishing Guard Golf Guard 3. Which product has the largest unit contribution margin? Golf Guard Ski Guard Fishing Guard
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