Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 Golf Fishing Guard
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 Golf Fishing Guard Guard Guard Selling price per unit $ 250 $ 250 $ 255 Variable cost per unit $ 160 $ 140 $ 155 Plastic injection molding machine processing time required to produce one 13 6 5 unit minutes minutes minutes 7 10 6 Pounds of plastic pellets per unit pounds pounds pounds 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? Complete this question by entering your answers in the tabs below. Required Required Required Required Required 1 2 3 4 5 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? (Round your final answers to 2 decimal places.) Show less Ski Guard Golf Guard Fishing Guard Contribution margin per minute of the per per per constrained resource minute minute minute Required Required Required Required Required 1 2 3 4 5 Which product offers the most profitable use of the plastic injection molding machine? O Fishing Guard Ski Guard Golf Guard 4 Required Required Required Required Required 1 2 3 5 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? (Round your final answers to 2 decimal places.) Show less A Ski Guard Golf Guard Fishing Guard Contribution margin per pound of the per per per constrained resource pound pound pound Required Required Required Required Required 1 2 3 4 5 Which product offers the most profitable use of the plastic pellets? Ski Guard O Fishing Guard Golf Guard Required Required Required Required Required 1 2 3 4 5 Which product has the largest contribution margin per unit? Ski Guard Fishing Guard O Golf Guard
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started