Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Selling

image text in transcribedimage text in transcribed

Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard Selling price per unit $320 Variable cost per unit $110 Golf Guard $328 $ 130 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 13 minutes 10 minutes 12 pounds 7 pounds Fook Required: Fishing Guard $275 $.95 2 minutes 14 pounds He Aak Print 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? Complete this question by entering your answers in the tabs below. Herences Required 1 Required 2 Required 3 Required 4 Required 5 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 mil constrained resource is earned by each product? Note: Round your final answers to 2 decimal places. Contribution margin per minute of the ute of the constrained resource Ski Guard Golf Guard Fishing Guard per minute per minute per minute Required 2 > Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Selling price per unit Variable cost per unit Ski Guard $320 $110 Golf Guard $ 320 $130 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 13 minutes 10 minutes 12 pounds 7 pounds Fishing Guard $275 $95 2 minutes 14 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? Complete this question by entering your answers in the tabs below. ces Required 1 Required 2 Required 3 Required 4 Required 5 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 pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? Note: Round your final answers to 2 decimal places. Ski Guard Contribution margin per pound of the constrained resource per pound Golf Guard per pound Fishing Guard per pound

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting

Authors: Heintz and Parry

20th Edition

1285892070, 538489669, 9781111790301, 978-1285892078, 9780538489669, 1111790302, 978-0538745192

More Books

Students also viewed these Accounting questions

Question

Compare and contrast DES and public key encryption.

Answered: 1 week ago

Question

Compare and contrast a network-based IPS, and a host-based IPS.

Answered: 1 week ago