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Exercise 6-5(Algo) Volume Trade-Off Decisions [L06-5] Outdoor Luggage, Incorporated, makes high-end hard-sided luggage...

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Accounting

Exercise 6-5(Algo) Volume Trade-Off Decisions [L06-5]
Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's
most popular models appear below.
Required:
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?
Which product offers the most profitable use of the plastic injection molding machine?
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?
Which product offers the most profitable use of the plastic pellets?
Which product has the largest contribution margin per unit?
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