Question

Exercise 12-5 Volume Trade-Off Decisions (L012-5) Complete this question by entering your answers in the tabs below Her Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment Data concerning three of the company's most popular models appear below. er 2 Required Red Roured Guard Guard and Selling price permit Plastic injection molding machine processing Sinergired to produ i t Pounds of plastic pellets per 130 11 minutes pounds 180 in pounds 130 15 minutes 15 pounds undecerned Complete this question by entering your answers in the tabs below 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. 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? Required Required2 Required 3 regured Regrees which product offers the most profitable use of the plastic pellets? Complete this question by entering your answers in the tabs below Hequired Required 2 Required 3 Required 4 roues if we assume that the total time available on the plastic ingection melding machine is the constraint in the production process, how much contribution margin per minute of the constrained more card by each product (Round your finalmente 2 decima Complete this question by entering your answers in the tabs below N ard permi and t e guard mit te of their Required: Required 2 Required 3 Recured Nured niedz Which product has the rest o n margin erunt OSNO Complete this question by entering your answers in the tabs below Required Required 2 required Regured Rogures Required )

Answer 1

1.contribution Margin per constraint resource= (sales price- variable cost)/molding minutes per unit

Ski Guard = (240-120)/11

=$10.91 per minute

Golf = (330-180)/8 =$18.75 per minute

Fishing = (285-130)/15=$10.33 per minute

2.golf guard offers most profitable use

3.ski = 120/9 =$13.33 per pound

Golf = 150/6 = 25 per pound

Fishing = 155/15 =$10.33 per pound

Gold guard offers most profitable use

5. Maximum contribution margin per unit = Fishing Guard