70.2K

Verified Solution

Link Copied!

5 Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Print 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 Ski Golf Fishing Guard Guard Guard 280 $ 200 $ 245 90 $ 160 $ 115 6 minutes 14 minutes 2 minutes 12 pounds 10 pounds 8 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? Required 1 Required 2 Required 3 Required 4 Required 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.) SKI Guard Golf Guard Fishing Guard Contribution margin per minute of the constrained resource per minute per minute per minute Required 1 Required 2 Required 3 Required 4 Required 5 Which product offers the most profitable use of the plastic injection molding machine? O Fishing Guard Ski Guard Golf Guard Required 1 Required 2 Required 3 Required 4 Required 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.) Skl Guard Golf Guard Fishing Guard Contribution margin per pound of the constrained per pound per pound per pound resource Required 1 Required 2 Required 3 Required 4 Required 5 Which product offers the most profitable use of the plastic pellets? Oski Guard Fishing Guard Golf Guard Required 1 Required 2 Required 3 Required 4 Required 5 Which product has the largest contribution margin per unit? Fishing Guard O Golf Guard Ski Guard

Answer & Explanation Solved by verified expert

See Answer