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. points Skipped 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 Ski Golf Guard Guard 320 $ 320 $ 119 $ 139 $ 13 minutes 10 minutes 12 pounds 7 pounds Fishing Guard 275 95 2 minutes 14 pounds eBook 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 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? Print 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 process, how much contribution margin per minute of the constrained resource is earned by each product? (Round your final answers to 2 decimal places.) Ski Guard per minuter Golf Guard per minute Fishing Guard per minute Contribution margin per minute of the constrained resource Required 1 Required 2 >

Answer 1

1) Contribution margin per minute

	Ski guard	Golf guard	Fishing guard
Selling price	320	320	275
Variable cost	110	130	95
Contribution margin	210	190	180
Minute per unit	13	10	2
Contribution margin per minute	16.15	19	90

2) Fishing guard

3) Contribution margin per Pound

	Ski guard	Golf guard	Fishing guard
Selling price	320	320	275
Variable cost	110	130	95
Contribution margin	210	190	180
Pound per unit	12	7	14
Contribution margin per pound	17.5	27.14	12.86

4) Golf guard

5) Ski guard