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please answer all parts for full upvote thank you! Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its
please answer all parts for full upvote thank you!
Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format income statement for the bilge pump product line follows: Thalassines Kataskeves, S.A. Income Statement-Bilge Pump For the Quarter Ended March 31 Sales $ 450,000 Variable expenses: Variable manufacturing expenses $ 135,000 Sales commissions 45,000 16,000 Shipping Total variable expenses Contribution margin 196,000 254,000 Fixed expenses: 21,000 Advertising (for the bilge pump product line) Depreciation of equipment (no resale value) 102,000 General factory overhead Salary of product-line manager Insurance on inventories Purchasing department 55,000* Total fixed expenses 345,000 Net operating loss. $ (91,000) *Common (indirect) costs allocated on the basis of machine-hours. +Common (indirect) costs allocated on the basis of sales dollars. Discontinuing the bilge pump product line would not affect sales of other product lines and would have no effect on the company's otal general factory erhead total Purchasing Department expenses. Required: What is the total financial impact of discontinuing the bilge pump product line? (Indicate a negative impact with a negative sign.) (Hint: See Example 11-2a in the course packet for guidance.) 43,000* 112,000 12,000 8 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 Golf Guard $ 270 Fishing Guard $ 305 Selling price per unit Variable cost per unit $ 130 $ 180 Plastic injection molding machine processing time Skipped required to produce one unit 9 minutes 4 minutes 9 pounds 6 minutes 16 pounds Pounds of plastic pellets per unit 7 pounds eBook 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? Hint 2. Which product offers the most profitable use of the plastic injection molding machine? Print References 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? points $ 260 $ 130Step by Step Solution
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