Question
Sport Bags Ltd. makes high-end hard-sided luggage for sports equipment. Data concerning three of the companys most popular models appear below. Ski Vault Golf Caddy
Sport Bags Ltd. makes high-end hard-sided luggage for sports equipment. Data concerning three of the companys most popular models appear below. Ski Vault Golf Caddy Fishing Quiver Selling price per unit 195 240 320 Variable cost per unit 75 80 140 Plastic injection molding machine processing time required to produce one unit 2 minutes 4 minutes 5 minutes Kilos of plastic pellets per unit 5 kilos 5 kilos 6 kilos Required: 1. The total time available on the plastic injection molding machine is the constraint in the production process. Which product would be the most profitable use of this constraint? multiple choice 1 Ski Vault Fishing Quiver Golf Caddy Which product would be the least profitable use of this constraint? multiple choice 2 Fishing Quiver Golf Caddy Ski Vault 2. 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. Ski Vault Golf Caddy Fishing Quiver Selling price per unit 195 240 320 Variable cost per unit 75 80 140 Contribution margin per unit (a) 120 160 180 Pounds of plastic pellets required to produce one unit (b) 5 kilos 5 kilos 6 kilos Contribution margin per unit of the constrained resource (a) / (b) $ 24 per kilo $ 32 per kilo $ 30 per kilo Which product would be the most profitable use of this constraint? multiple choice 3 Ski Vault Golf Caddy Fishing Quiver Which product would be the least profitable use of this constraint? multiple choice 4 Fishing Quiver Ski Vault Golf Caddy 3. Which product has the largest unit contribution margin? multiple choice 5 Ski Vault Golf Caddy Fishing Quiver Why wouldnt this product be the most profitable use of the constrained resource in either case?
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