Outdoor Luggage, Incorporated, makes high-end hard-sided luggage for sports equipment. Data concerning three of the...
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Outdoor Luggage, Incorporated, 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 $ 260 $ 330 $ 205 Variable cost per unit $ 120 $ 180 $ 135 Plastic injection molding machine processing time required to produce one unit 9 minutes 12 minutes 11 minutes Pounds of plastic pellets per unit 12 pounds 15 pounds 11 pounds Required: If the total time available on the plastic injection molding machine is the constraint, 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 a severe shortage
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