File Edit View History Bookmarks Window Help Apple Philosophy Link Sports and So

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File Edit View History Bookmarks Window Help Apple Philosophy Link Sports and Society connect UA Student Center Portal Marketing St. System SONA Bus D2L Economics Book ter 12 Homework Assignment Exercise 12-5 Volume Trade-Off Decisions [L012-51 Outdoor Luggage, Inc, makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below riahing 250 Selling price per unit Variable eost per unit Piastie injection moiding machise processing S minutes & minutes 3 ninutes 140 $ tine required to produce one unit Pounda of plastie pellets per unit pounds 15 pounds pounds Required: 1 It 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 productilon 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 4 Required 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 places.) per minute

Explanation / Answer

Req1 Ski Guard Golf Guard Fishing Guard a Selling Price per unit 250 340 265 b Less:Variable cost per unit 80 140 115 c=a-b Contribution margin per unit 170 200 150 d Time required per unit 5 6 3 e=c/d Contribution Margin per minute of the constrained Resources 34 per minute 33.33 per minute 50 per minute Req2 Fishing Guard Req3 Ski Guard Golf Guard Fishing Guard a Selling Price per unit 250 340 265 b Less:Variable cost per unit 80 140 115 c=a-b Contribution margin per unit 170 200 150 d Pounds required per unit 6 15 6 Contribution Margin per pound of the constrained Resources 28.33 per pound 13.33 per pound 25 per pound Req4 Ski Guard Req5 Golf Guard

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