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Sport Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company%u2019s most popular models appear below. Ski Vault Golf Caddy

Sport Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company%u2019s most popular models appear below.


Ski
Vault
Golf
Caddy
Fishing
Quiver
Selling price per unit $ 260 $ 350 $ 245
Variable cost per unit $ 100 $ 150 $ 105
Plastic injection molding machine processing time required to produce one unit 6 minutes 12 minutes 11 minutes
Pounds of plastic pellets per unit 15 pounds 15 pounds 12 pounds


Required:
1a.

The total time available on the plastic injection molding machine is the constraint in the production process. What is contribution margin per unit of the constrained resources for Ski Vault, Golf Caddy and Fishing Quiver? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)


Ski Vault Golf Caddy Fishing Quiver
Contribution margin $ per minute $ per minute $ per minute


1b. Which product would be the most profitable use of this constraint?
Ski Vault
Fishing Quiver
Golf Caddy


1c. Which product would be the least profitable use of this constraint?
Ski Vault
Fishing Quiver
Golf Caddy


2a.

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. What is contribution margin per unit of the constrained resources for Ski Vault, Golf Caddy and Fishing Quiver? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)


Ski Vault Golf Caddy Fishing Quiver
Contribution margin $ per pound $ per pound $ per pound


2b. Which product would be the most profitable use of this constraint?
Golf Caddy
Ski Vault
Fishing Quiver


2c. Which product would be the least profitable use of this constraint?
Golf Caddy
Ski Vault
Fishing Quiver


3. Which product has the largest unit contribution margin?
Golf Caddy
Fishing Quiver
Ski Vault

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