Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. D

Question

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 238 $ 98 $ 338 $ 158 $ Selling price per unit Variable cost per unit Plastic injection molding machine processing 265 185 5 minutes 12 pounds 4 minutes 18 minutes time required to produce one unit Pounds of plastic pellets per unit 5 pounds 11 pounds Requlred: 1·lf 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 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 1Required 2 Required 3 Required 4Required 5 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? (Round your final answers to 2 decimal Ski Guard Golf Guard Fishing Guard Contribution margin per minute of the per minute per minute per minute Required 2>

Explanation / Answer

1 Ski guard Golf guard Fishing guard Selling price per unit 230 330 265 Variable cost per unit 90 150 105 Contribution margin per unit 140 180 160 Plastic injection molding machine processing time per unit 4 10 5 Contribution margin per unit of constrained resource 35 18 32 2 Ski guard 3 Ski guard Golf guard Fishing guard Selling price per unit 230 330 265 Variable cost per unit 90 150 105 Contribution margin per unit 140 180 160 Plastic injection molding machine processing time per unit 5 11 12 Contribution margin per unit of constrained resource 28.00 16.36 13.33 4 Ski guard 5 Golf guard

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