Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Dat
ID: 2581300 • Letter: O
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 $310 Selling price per unit Variable cost per unit Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit $215 $390 $160 11 minutes 14 pounds 11 minutes 7 pounds 2 minutes 15 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.) Ski Guard Golf Guard Fishing Guard Selling price per unit Variable cost per unit Contribution margin per unit Plastic injection molding machine processing time required to produce one unit Contribution margin per unit of the constrained resource minutes minutes minutes per minute per minute per minute 1b. Which product would be the most profitable use of this constraint? Fishing Guard O Golf Guard O Ski Guard 1c. Which product would be the least profitable use of this constraint? O Fishing Guard O Golf Guard O Ski Guard 2a. 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.) Ski Guard Golf Guard Fishing Guard Selling price per unit Variable cost per unit Contribution margin per unit Pounds of plastic pellets required to produce one unit Contribution margin per unit of the constrained resource pounds pounds pounds per pound per pound per poundExplanation / Answer
Ski Guard
Golf Guard
Fishing Guard
Selling price per unit
310
390
215
Less: Variable cost per Unit
70
160
95
Contribution margin per unit
240
230
120
Plastic injection molding machine processing time required to produce one unit
11
11
2
Contribution margin per unit of constrained resource
21.82
20.91
60.00
Which product would be the most profitable use of this constraint?
FISHING GUARD is the most profitable
Which product would be the most profitable use of this constraint?
FISHING GUARD is the most profitable
Ski Guard
Golf Guard
Fishing Guard
Selling price per unit
310
390
215
Less: Variable cost per Unit
70
160
95
Contribution margin per unit
240
230
120
Pounds of plastic pellets required to produce one unit
14
7
15
Contribution margin per unit of constrained resource
17.14
32.86
8.00
Which product would be the most profitable use of this constraint?
GOLF GUARD is the most profitable
Which product would be the least profitable use of this constraint?
Fishing Guard is the least profitable
Which product has largest unit contribution?
Ski Guard has largest unit contribution
Ski Guard
Golf Guard
Fishing Guard
Selling price per unit
310
390
215
Less: Variable cost per Unit
70
160
95
Contribution margin per unit
240
230
120
Plastic injection molding machine processing time required to produce one unit
11
11
2
Contribution margin per unit of constrained resource
21.82
20.91
60.00
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