Help Save & Exit Check Exercise 12-5 Volume Trade-Off Decisions [LO12-5] Outdoor
ID: 2522873 • Letter: H
Question
Help Save & Exit Check Exercise 12-5 Volume Trade-Off Decisions [LO12-5] 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 Variable cost per unit Plastic injection molding machine processing 250$ 160 $ 250 $ 140 $ 255 155 5 minutes 6 pounds 13 minutes 6 minutes time required to produce one unit Pounds of plastic pellets per unit 7 pounds 10 pounds Required: 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? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If we assu constraint has become the total resource is earned by each product? 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? me that a severe shortage of plastic pellets has required the company to cut back its production so much that its new available pounds of plastic pellets, how much contribution margin per pound of the constrained Complete this question by entering your answers in the tabs below.Explanation / Answer
Answer
1.
20.00
2.
Product Fishing Guard offers most profitable use of plastic injection molding machine as it has the higest contribution of $20
3
4. Product Fishing Guard has the most rofitable use of palstic pellets
5.Product Golf Guard has the largest contribution margin per unit.
Particulars Ski Guard Golf Guard Fishing Guard 1 Selling Price Per unit 250 250 255 2 Variable cost per unit 160 140 155 3 Contribution per unit(1-2) 90 110 100 4 Machine processing time 13 6 5 5 Contribution per machine processing time(3/4) 6.92 18.33 20.00 6 Pounds of plastic pellet per unit 7 10 6 7 Contribution per Pounds of plastic pellet (3/6) 12.86 11.00 16.67Related Questions
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