PLEASE ANSWER SOON Outdoor Luggage Inc. makes high-end hard-sided luggage for sp

Question

PLEASE ANSWER SOON

Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models appear below.

The total time available on the plastic injection molding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? (Round your answers to 2 decimal places.)

Ski Guard

Ski Guard

A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection molding machine is no longer the bottleneck. Instead, the constraint is the total available pounds of plastic pellets. What is contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? (Round your answers to 2 decimal places.)

PLEASE ANSWER SOON

Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models appear below.

Ski
Guard Golf
Guard Fishing
Guard   Selling price per unit $260 $370 $205   Variable cost per unit $130 $130 $145   Plastic injection molding machine processing
   time required to produce one unit 4 minutes 6 minutes 9 minutes   Pounds of plastic pellets per unit 9 pounds 16 pounds 7 pounds

The total time available on the plastic injection molding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? (Round your answers to 2 decimal places.)

1b. Which product would be the most profitable use of this constraint? Golf Guard Fishing Guard

Ski Guard

1c. Which product would be the least profitable use of this constraint? Golf Guard Fishing Guard

Ski Guard

A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection molding machine is no longer the bottleneck. Instead, the constraint is the total available pounds of plastic pellets. What is contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? (Round your answers to 2 decimal places.)

2b. Which product would be the most profitable use of this constraint? Golf Guard Fishing Guard Ski Guard 2c. Which product would be the least profitable use of this constraint? Golf Guard Fishing Guard Ski Guard 3. Which product has the largest unit contribution margin? Golf Guard Fishing Guard Ski Guard

Explanation / Answer

1a)

1b) The product that would be the most profitable use of this constraint is Golf Guard

1c) The product that would be the least profitable use of this constraint is Fishing Guard

2a)

Products

2b) The product that would be the most profitable use of this constraint is Golf Guard

2c) The product that would be the least profitable use of this constraint is  Fishing Guard

3)

Product Gold Guard has the largest unit contribution margin

Products Ski Guard Golf Guard Fishing Guard Selling price per unit ($) 260 370 205 variable cost per unit ($) 130 130 145 contribution margin per unit 130 240 60 Plastic injection molding machine processing time required to produce one unit 4 6 9 Contribution margin per unit of the constraint resource ($) 32.5 40 6.67

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