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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 $ 200 $ 300 $ 255
Variable cost per unit $ 60 $ 140 $ 55
Plastic injection molding machine processing time required to produce one unit 2 minutes 5 minutes 4 minutes
Pounds of plastic pellets per unit 7 pounds 4 pounds 8 pounds

Required:

1-a. 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?

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 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?

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

Ski Guard
Golf Guard
Fishing Guard

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

Ski Guard
Golf Guard
Fishing Guard

3. Which product has the largest unit contribution margin?

Ski Guard
Golf Guard
Fishing Guard

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