Exercises G Help Save& Exit Submit Check my work Outdoor Luggage, Inc., makes hi

Question

Exercises G Help Save& Exit Submit Check my work Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Selling price per unit Variable cost per unit Plastic injection molding machine processing 290 $ 185 $ 190 $ 90 $ 215 tine required to produce one unit Pounda of plastic pellets per unit 90 12 ninutes minutes 8 minutes 10 pounds 13 pounds 9 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 eaned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. 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? 4. Which product offers the most profitable use of the plastic pellets 5. Which product has the largest contribution margin per unit? Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Required 5 If we assume that the total time available on the plastic injection molding machine is the constraint in the production pros much contribution margin per minute of the constrained resource is earned by each product? (Round your final answers t places.) KPrev 4 of 6 Score answer> MacBook Air

Explanation / Answer

Solution 1:

Solution 2:

Golf guard product offers most profitable use of plastic injection molding machine.

Solution 3:

Solution 4:

Fishing guard product offers most profitable use of plastic pellets.

Solution 5:

Fishing guard product had largest contribution margin per unit.

Computation of contribution margin per minute of molding machine processing time - Outdoor Luggage Inc. Particulars Ski Guard Golf Guard Fishing Guard Selling price per unit $290.00 $190.00 $215.00 Variable cost per unit $185.00 $90.00 $90.00 Contribution margin per unit $105.00 $100.00 $125.00 Machine processing time per unit (in minute) 12 6 8 Contribution per minute of machine processing time $8.75 $16.67 $15.63

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