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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 $320 $320 $275
Variable cost per unit $110 $130 $95
Plastic injection molding machine processing time required to produce one unit 13 minutes 10 minutes 2 minutes
Pounds of plastic pellets per unit 12 pounds 7 pounds 14 pounds

Required:

1a. The total time available on the plastic injection molding 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?

image text in transcribed

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

Fishing Guard
Ski Guard
Golf Guard

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

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 molding machine is no longer the bottleneck. Instead, the constraint is the total available pounds of plastic pellets. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard?

image text in transcribed

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

Golf Guard
Fishing Guard
Ski Guard

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

Golf Guard
Fishing Guard
Ski Guard

3. Which product has the largest unit contribution margin?

Ski Guard
Fishing Guard
Golf 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 $ 0 $ $ minutes 0 per minute 0 minutes 0 per minute minutes 0 per minute Ski Guard Golf Guard Fishing Guard Selling price per unit Variable cost per unit Contribution margin per unit Pounds of plastic pellets required to produce one unit Contribution margin per unit of the constrained resource 0 $ $ 0 pounds o per pound 0 pounds per pound pounds O per pound

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