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

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 Fishing Guard $310 $320 $265 Guard Selling price per unit Variable cost per unit Plastic injection molding machine $110 $150 $145 10 8 minutes minutes minutes processing 10 time required to produce one unit Pounds of plastic pellets per unit 16 7 pounds pounds Required: 1a. 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.)

Explanation / Answer

Contribution margin per minute :

Contribution margin per pound :

Ski guard Gold guard Fishing guarad Selling price per unit 310 320 265 Variable cost per unit 110 150 145 Contribution margin per unit 200 170 120 Minute per unit 8 10 10 Contribution margin per minute 25 17 12

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