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TabSoupas, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the companys most popular models appear below. Ski Guard Golf Guard Fishing

TabSoupas, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the companys most popular models appear below.
Ski Guard Golf Guard Fishing Guard
Sales Demand (units) 6,000 5,000 3,000
Selling price per unit $200 $300 $255
Variable cost per unit $60 $140 $55
Pounds of plastic pellets per unit 8 4 8
Answer the following three (3) questions. Use Excel to do your calculations.

1. What is the contribution margin per unit for each product?

2. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its 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?

3. How many units of each product should be produced if the company can only acquire 50,000 pounds of pellets?

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