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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. Required: 1-a. The total
Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. 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? 1-b. Which product would be the most profitable use of this constraint? Ski Guard Fishing Guard Golf Guard 1-c. Which product would be the least profitable use of this constraint? Ski Guard Fishing Guard Golf 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? 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 Fishing Guard Golf Guard
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