Sport Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data

Question

Sport 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 Vault Caddy Quiver $330 $150 $150 85 $310 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 $275 8 minutes 15 minutes 5 minutes 7 pounds 9 pounds 10 pounds Required 1a. The total time available on the plastic injection molding machine is the constraint in the production process. What is contribution margin per unit of the constrained resources for Ski Vault, Golf Caddy and Fishing Quiver? (Round your answers to 2 decimal places.) Ski Vault Golf Caddy Fishing Quiver Contribution margin per minute per minute per minute 1b. Which product would be the most profitable use of this constraint? Fishing Quiver Golf Caddy 0 Ski Vault 1c. Which product would be the least profitable use of this constraint? Fishing Quiver Golf Caddy O Ski Vault

Explanation / Answer

1a contibution margin

ski vault=(310-150)/8=$160/8=$20

golf caddy=(330-150)/15=$180/15=$12

fising quiver=(275-85)/5=$190/5=$38

1b fising quiver is most profitable use of this constraint

1c golf caddy is least profitable use of this constraint

2a

ontibution margin

ski vault=(310-150)/8=$160/7=22.85

golf caddy=(330-150)/15=$180/9=20

fising quiver=(275-85)/5=$190/10=19

2b ski vault is most profitable use of this constraint

2c fising quiver would be least profitable use of this constraint

3 fising quiver has the largest contribution margin

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