Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the...
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Accounting
Outdoor Luggage, 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
Selling price per unit
$
300
$
380
$
225
Variable cost per unit
$
160
$
170
$
75
Plastic injection molding machine processing time required to produce one unit
7 minutes
6 minutes
4 minutes
Pounds of plastic pellets per unit
11 pounds
13 pounds
6 pounds
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? (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
2. 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.)
Ski Guard
Golf Guard
Fishing Guard
Contribution margin per pound of the constrained resource
..........
per pound
...........
per pound
...........
per pound
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