solve 1) and 2)

1)

2)

.

Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Guard 240 $ 100 $ Golf Guard 370 $ 255 $ Pishing Guard 225 105 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 7 minutes 15 pounds 5 minutes 7 pounds 7 minutes 10 pounds Note: Use the File button on the left of the window and download HW6.2 Q10 Tables. Use the tables to help with your calculations for requirements 1 and 3. 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? Requirement 1: Ski Golf Fishing Selling price per unit Variable cost per unit contribution margin per unit Time required to produce one unit contribution margin per minute Requirement 3: Ski Golf Fishing Selling price per unit Variable cost per unit contribution margin per unit Pounds of plastic per unit contribution margin per pound Dorsey Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split-off point total $370,000 per quarter. For financial reporting purposes, the company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product A B Selling Price $24.00 per pound $18.00 per pound $30.00 per gallon Quarterly Output 13,800 pounds 21,500 pounds 5,000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Product A B Additional Processing Costa $ 81,150 $117, 125 $ 52,900 Selling Price $29.50 per pound $24.50 per pound $38.50 per gallon Required: 1. What is the financial advantage (disadvantage) of further processing each of the three products beyond the split-off point? 2. Based on your analysis in requirement 1, which product or products should be sold at the split-off point and which productor products should be processed further